Maine seeks input ahead of 3-GW offshore wind solicitation

https://renewablesnow.com/news/maine-seeks-input-ahead-of-3-gw-offs...

Maine is seeking public input to underpin the future planning that the US state will need to make to achieve its goal of deploying up to 3 GW of offshore wind turbine capacity by 2040.

The feedback will be collected through a Request for Information (RFI) issued by Governor Janet Mills on Wednesday. The input will help the New England state conduct the first commercial offshore wind solicitation for the Gulf of Maine, with the responses to be used by state agencies to evaluate solicitation designs and the most appropriate approach for implementation.

Submissions under the RFI will be accepted by June 21, 2024.

“Public input gathered through this RFI will shape Maine’s first offshore wind solicitation, a key milestone in the development of responsible offshore wind for the State and the region," said Dan Burgess, Director of Maine Governor’s Energy Office.

In March, the US Bureau of Ocean Energy Management (BOEM) designated a Final Wind Energy Area (Final WEA) in the Gulf of Maine that holds the potential to accommodate 32 GW of capacity. The area is located offshore Maine, Massachusetts and New Hampshire and is suitable for floating wind generation.

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Comment by Willem Post on April 27, 2024 at 1:27pm

WORLD’s LARGEST OFFSHORE WIND SYSTEM DEVELOPER ABANDONS TWO MAJOR US PROJECTS AS WIND BUST CONTINUES 

https://www.windtaskforce.org/profiles/blogs/world-s-largest-offsho...

EXCERPT

MORE CANCELLATIONS ARE COMING

New York State had signed contracts with EU big wind companies for four offshore wind projects

Sometime later, the companies were trying to coerce an additional $25.35 billion (per Wind Watch) from New York ratepayers and taxpayers over at least 20 years, because they had bid at lower prices than they should have.

New York State denied the request on October 12, 2023; “a deal is a deal”, said the Commissioner 

 

Owners want a return on investment of at least 10%/y, if bank loans for risky projects are 6.5%/y, and project cost inflation and uncertainties are high 

The about 3.5% is a minimum for all the years of hassles of designing, building, erecting, and paperwork of a project

The project prices, with no subsidies, would be about two times the agreed contract price, paid by Utilities to owners. That means, the effect of subsidies reduced the contract price by 50%.

All contractors had bid too low. When they realized there would be huge losses, they asked for higher contract prices.

It looks like the contract prices will need to be at least $150/MWh, for contractors to make money.

Those contract prices would be at least 60% higher than in 2021

Oersted, Denmark, Sunrise wind, contract price $110.37/MWh, contractor needs $139.99/MWh, a 27% increase

Equinor, Norway, Empire 1 wind, contract price $118.38/MWh, contractor needs $159.64/MWh, a 35% increase

Equinor, Norway, Empire 2 wind, contract price $107.50/MWh, contractor needs $177.84/MWh, a 66% increase

Equinor, Norway, Beacon Wind, contract price $118.00/MWh, contractor needs $190.82/MWh, a 62% increase

https://www.windtaskforce.org/profiles/blogs/liars-lies-exposed-as-wind-electricity-price-increases-by-66-wake

Four Cancelled Projects in New York

Empire Wind 2, 1260 MW, near Long- Island; 1404 MW, Attentive Energy One; 1314 MW, "Community" Offshore Wind; 1414 MW, Excelsior Wind

https://www.reuters.com/business/energy/equinor-bp-cancel-contract-...

Offshore Cancellations in Massachusetts, Connecticut and Rhode Island

BP (BP.L) and Oersted (ORSTED.CO) have announced hefty writedowns , and US offshore project cancellations, in recent days, in the face of high inflation, high interest rates, and lack of the timely availability of specialized ships.

In Rhode Island, in March 2023, a procurement for offshore wind drew only one bidder – an 884 MW proposal from Eversource and Ørsted.

In August, Ørsted CEO Mads Nipper warned the company could walk away from unprofitable projects in the US amid the turbulence in pricing and supply chain issues.

Avangrid, a Spanish company, in September 2022, walked away from its 804 MW Park City wind project, planned for off the coast of Martha’s Vineyard. It was no longer feasible at the 2019 contract price agreed with Connecticut.

At the time, the company said, inflation, higher interest rates and supply chain issues made the agreed price of $79.83 per MWh unprofitable.

In July 2023, Avangrid also walked away from its 1200 MW Commonwealth Wind project for Massachusetts.

The two projects became so unprofitable, it made better financial sense for Avangrid to pay $48, Massachusetts + $16, Connecticut = $64 million in walk-away penalties, rather than face much higher costs for building the project, with no prospect of a profit. 

SHELL: LONDON, Nov 2 (Reuters) - Shell's CFO said on Thursday, the firm had abandoned a power purchase agreement (PPA), at contract price of $76.73/MWh, for the planned 2400 MW South Coast offshore wind project, off the coast of Massachusetts, agreeing to pay a $60 million walk-away penalty, rather than face much higher costs for building the project, with no prospect of a profit. 

https://ctexaminer.com/2023/10/03/avangrid-cancels-park-city-wind-c...

Comment by Willem Post on April 27, 2024 at 1:11pm

The 3000 MW floating offshore wind turbines will cost at least $22 BILLION FOR CAPITAL COST, plus $500 million to ruin pristine Sears Island 

The price of the electricity will be about 18 c/kWh, as bought by utilities, which will mark it up with many other costs, before selling to users 


This boondoggle will permanently impoverish already-struggling Maine households, trying to make ends meet in a too-high-inflation economy, with high interest rates, and minor real growth

The stupidity of all this is off the charts.

It will only make richer the already rich elites, and further impoverish most of the rest, and will do nothing regarding climate change, especially with China, India,, etc., burning more and more low-cost coal.

Floating Offshore Wind Systems in the Impoverished State of Maine

https://www.windtaskforce.org/profiles/blogs/floating-offshore-wind...

Despite the meager floating offshore MW in the world, pro-wind politicians, bureaucrats, etc., aided and abetted by the lapdog Main Media and "academia/think tanks", in the impoverished State of Maine, continue to fantasize about building 3,000 MW of 850-ft-tall floating offshore wind turbines by 2040!!

 

Maine government bureaucrats, etc., in a world of their own climate-fighting fantasies, want to have about 3,000 MW of floating wind turbines by 2040; a most expensive, totally unrealistic goal, that would further impoverish the already-poor State of Maine for many decades.

 

Those bureaucrats, etc., would help fatten the lucrative, 20-y, tax-shelters of mostly out-of-state, multi-millionaire, wind-subsidy chasers, who likely have minimal regard for:

 

1) Impacts on the environment and the fishing and tourist industries of Maine, and

2) Already-overstressed, over-taxed, over-regulated Maine ratepayers and taxpayers, who are trying to make ends meet in a near-zero, real-growth economy.

 

Those fishery-destroying, 850-ft-tall floaters, with 24/7/365 strobe lights, visible 30 miles from any shore, would cost at least $7,500/ installed kW, or at least $22.5 billion, if built in 2023 (more after 2023)

 

Almost the entire supply of the Maine projects would be designed and made in Europe, then transported across the Atlantic Ocean, in European specialized ships, then unloaded at a new, $500-million Maine storage/pre-assembly/staging/barge-loading area, then barged to European specialized erection ships for erection of the floating turbines. The financing will be mostly by European pension funds paying pensions to retirees.

 

About 300 Maine people would have jobs during the erection phase

The other erection jobs would be by specialized European people, mostly on cranes and ships

About 100 Maine people would have long-term O&M jobs, using European spare parts, during the 20-y electricity production phase.

https://www.maine.gov/governor/mills/news/governor-mills-signs-bill...

 

The Maine woke bureaucrats are falling over each other to prove their “greenness”, offering $millions of this and that for free, but all their primping and preening efforts has resulted in no floating offshore bids from European companies

 

The Maine people have much greater burdens to look forward to for the next 20 years, courtesy of the Governor Mills incompetent, woke bureaucracy that has infested the state government 

 

The Maine people need to finally wake up, and put an end to the climate scare-mongering, which aims to subjugate and further impoverish them, by voting the entire Democrat woke cabal out and replace it with rational Republicans in 2024

The present course leads to financial disaster for the impoverished State of Maine and its people.

The purposely-kept-ignorant Maine people do not deserve such maltreatment

 

Electricity Cost: Assume a $750 million, 100 MW project consists of foundations, wind turbines, cabling to shore, and installation at $7,500/kW.

Production 100 MW x 8766 h/y x 0.40, CF = 350,640,000 kWh/y

Amortize bank loan for $525 million, 70% of project, at 6.5%/y for 20 years, 13.396 c/kWh.

Owner return on $225 million, 30% of project, at 10%/y for 20 years, 7.431 c/kWh

Offshore O&M, about 30 miles out to sea, 8 c/kWh.

Supply chain, special ships, and ocean transport, 3 c/kWh

All other items, 4 c/kWh 

Total cost 13.396 + 7.431 + 8 + 3 + 4 = 35.827 c/kWh

Less 50% subsidies (ITC, 5-y depreciation, interest deduction on borrowed funds) 17.913 c/kWh

Owner sells to utility at 17.913 c/kWh

 

NOTE: The above prices compare with the average New England wholesale price of about 5 c/kWh, during the 2009 - 2022 period, 13 years, courtesy of:

 

Gas-fueled CCGT plants, with low-cost, low-CO2, very-low particulate/kWh

Nuclear plants, with low-cost, near-zero CO2, zero particulate/kWh

Hydro plants, with low-cost, near-zero-CO2, zero particulate/kWh

Cabling to Shore Plus $Billions for Grid Expansion on Shore: A high voltage cable would be hanging from each unit, until it reaches bottom, say about 200 to 500 feet. 
The cables would need some type of flexible support system. There would be about 5 cables, each connected to sixty, 10 MW wind turbines, making landfall on the Maine shore, for connection to 5 substations (each having a 600 MW capacity, requiring several acres of equipment), then to connect to the New England HV grid, which will need $billions for expansion/reinforcement to transmit electricity to load centers, mostly in southern New England.

 

Floating Offshore a Major Financial Burden on Maine People: Rich Norwegian people can afford to dabble in such expensive demonstration follies (See Appendix 2), but the over-taxed, over-regulated, impoverished Maine people would buckle under such a heavy burden, while trying to make ends meet in the near-zero, real-growth Maine economy. Maine folks need lower energy bills, not higher energy bills.

Floating Offshore Wind in Norway

Equinor, a Norwegian company, put in operation, 11 Hywind, floating offshore wind turbines, each 8 MW, for a total of 88 MW, in the North Sea. The wind turbines are supplied by Siemens, a German company

Production will be about 88 x 8766 x 0.5, claimed lifetime capacity factor = 385,704 MWh/y, which is about 35% of the electricity used by 2 nearby Norwegian oil rigs, which cost at least $1.0 billion each.

On an annual basis, the existing diesel and gas-turbine generators on the rigs, designed to provide 100% of the rigs electricity requirements, 24/7/365, will provide only 65%, i.e., the wind turbines have 100% back up.

The generators will counteract the up/down output of the wind turbines, on a less-than-minute-by-minute basis, 24/7/365

The generators will provide almost all the electricity during low-wind periods, and 100% during high-wind periods, when rotors are feathered and locked.

The capital cost of the entire project was about 8 billion Norwegian Kroner, or about $730 million, as of August 2023, when all 11 units were placed in operation, or $730 million/88 MW = $8,300/kW. See URL

That cost was much higher than the estimated 5 billion NOK in 2019, i.e., 60% higher

The project is located about 70 miles from Norway, which means minimal transport costs of the entire supply to the erection sites

The project produces electricity at about 42 c/kWh, no subsidies, at about 21 c/kWh, with 50% subsidies 

In Norway, all work associated with oil rigs is very expensive.

Three shifts of workers are on the rigs for 6 weeks, work 60 h/week, and get 6 weeks off with pay, and are paid well over $150,000/y, plus benefits.

If Norwegian units were used in Maine, the production costs would be even higher in Maine, because of the additional cost of transport of almost the entire supply, including specialized ships and cranes, across the Atlantic Ocean, plus

A high voltage cable would be hanging from each unit, until it reaches bottom, say about 200 to 500 feet. 

The cables would need some type of flexible support system
The cables would be combined into several cables to run horizontally to shore, for at least 25 to 30 miles, to several onshore substations, to the New England high voltage grid.

.

https://www.offshore-mag.com/regional-reports/north-sea-europe/arti...

https://en.wikipedia.org/wiki/Floating_wind_turbine

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Comment by Richard McDonald/Saving Maine on April 26, 2024 at 12:30pm

This RFI BS is to avoid public hearings and the tough questions about this absurd ideological scam. 

Comment by Penny Gray on April 26, 2024 at 10:41am

What sort of public input?  I'd sure like to tell them where they can put those wind turbines.

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

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