WASHINGTON – The U.S. Department of Energy released three new reports, Aug. 24, extolling the progress made on wind energy and projecting strong growth in that sector, even as news reports multiply concerning the growing opposition to federal and state offshore wind initiatives.
The three reports are:
- Land-Based Wind Market Report: 2022 Edition
- Offshore Wind Market Report: 2022 Edition
- Distributed Wind Market Report: 2022 Edition
Together, these reports argue that “wind power continues to be one of the fastest growing and lowest cost resources of electricity in America and is poised for rapid growth.”
The offshore wind report speaks to the continued growth and investor confidence in the offshore wind market. It states that New Jersey and New York combine for the highest energy capacity in the U.S. offshore wind energy pipeline. Graphics in the reports show tremendous growth in offshore wind capacity by relying on a pipeline of state policies rather than actual progress in offshore wind construction.
While the reports talk of domestic industry investment in wind energy, news sources almost daily carry stories of investment shortfalls and the need for increased taxpayer and ratepayer support.
The optimistic picture coming from state officials has led to policy decisions that limit options if the offshore wind pipeline does not materialize in the ambitious timeframes set for it.
This month, New Jersey, along with seven other states, joined a legal challenge to a federally approved interstate natural gas pipeline, saying the project is not needed. New Jersey, along with officials from other states and clean-energy advocates, is arguing that the nearly $1 billion project would saddle ratepayers with unnecessary natural gas capacity – unnecessary because the state will be meeting its needs with renewables, which, in New Jersey, means offshore wind.
The Federal Energy Regulatory Commission approved the project in January, saying it would provide greater reliability at points of peak need and would also maintain a level of diversity in the energy portfolio. Those opposing the project, which now formally includes the New Jersey attorney general, seem ready instead to play in an all-or-nothing game with renewables.
Many environmental groups have gone so far as to urge Gov. Phil Murphy to impose a moratorium of new fossil fuel projects. The state’s willingness to litigate over the pipeline may be a sign the groups have captured Murphy’s ear.
Opponents of the pipeline say that in New Jersey, ratepayers would be left with obligations to pay back for excess gas capacity, even as Murphy set a goal for a 100% clean energy economy by 2050.
The other states joining in the litigation to stop the pipeline are Maryland, Connecticut, Washington, Oregon, Vermont, Massachusetts, and New York.
Meanwhile, opponents of the offshore wind initiative in New Jersey say it is the Garden State that has not shown a proper concern for ratepayers. Republican legislators in Trenton have seen unexpected movement among the Democratic leadership of the Assembly and the Senate on the issue of protecting the state ratepayers.
Republicans have argued that ratepayers need answers before the state moves any further with the offshore wind initiative. The leaders of the Democratic majority in the state Legislature, Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin, issued a statement, Aug. 7, expressing concern with how the New Jersey Board of Public Utilities has handled the auction of new lease areas and urging more public information on the “unanswered questions about the economic impact of these projects on ratepayers.”
In short, a concern for ratepayers is one of the reasons for clean energy advocates to oppose the pipeline project as unnecessary in a world rapidly transitioning to clean energy. Simultaneously, a concern for ratepayers is a reason given by offshore wind farm opposition to halt construction of that clean energy initiative because the full economic impact of offshore wind on those ratepayers remains unclear.
The three reports out of Washington paint a rosy picture of rapid growth in the development and deployment of wind energy options and the attractiveness of the sector to private investment, yet, in July, New Jersey became the latest state to transfer federal tax credits from ratepayers to the Danish wind farm developer Ørsted because inflation and pipeline issues have increased costs beyond what was envisioned at the time Ørsted bid the project.
This past week marked an interesting point in the wind energy effort.
Citizen groups and local governments have filed suits to halt wind farm development. The New Jersey attorney general has joined litigation to halt a natural gas pipeline. Environmental groups are pressuring Murphy for a moratorium on fossil fuel projects, while wind farm developers are falling behind their ambitious schedules and have an increased appetite for public funds.
The three reports from the Energy Department may serve to increase skepticism rather than to allay it.
Contact the author, Vince Conti, at vconti@cmcherald.com.
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