State flaunting Wind Energy Efficiency Embarrassed by Reality

New Jersey’s nascent offshore wind industry, the pride of the Murphy Administration, is taking on water.  Higher costs, environmental damage, and manufacturing short-cuts mean that the promised environmental and economic benefits, which were always a fantasy, mean New Jerseyans will be on the hook for even higher costs. Save Jersey.

Let’s start with higher costs.  In a report for the Manhattan Institute in February 2022, (below) the author discussed how offshore wind costs were increasing, not decreasing as proponents claimed.  Because of increased demand for inputs, including concrete, steel, and the various rare earths required to manufacture turbines, turbine costs were going up.  Add to that increased demand for the specialized ships needed to install the newest, gargantuan turbines – 850 tall or more – along with shortages of the undersea cable needed to bring the electricity generated to shore, and the already high prices of New Jersey’s offshore wind contracts would turn out to be too low.

And so they have.  Ørsted, the Danish company that is building both proposed Ocean Wind projects, wants to renegotiate its contracts.  It also wants to capture all of the tax credits the Biden Administration has on offer, notably the 30% investment tax credit (ITC) and the production tax credit (PTC), which this year is $26 per megawatt-hour.  Under the existing contracts, those tax credits were supposed to benefit New Jersey ratepayers.

And it’s not just here

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