Posted on 03/06/2024 7:02:51 AM PST by MtnClimber
The energy implosion set in motion by New York’s Climate Leadership and Community Protection Act of 2019 (Climate Act) continues to unfold slowly. This week we have gotten a few more new data points. If you can read between the lines of wild spinning by the Governor and her team of bureaucrats, you will find that the scope of offshore wind projects moving forward with accepted bids has decreased by about two-thirds, while the price has just jumped by over 30%.
First, some background. The Climate Act sets several unachievable and impossible targets, the first of which is 70% of electricity from “renewables” by 2030. How to get there? The bureaucrats in charge of meeting the targets have no idea what they are doing, but they have established as a first goal to have some 9,000 MW of offshore wind turbines (nameplate capacity) up and running by some point in the 2030s. Does that sound like a lot? Current average demand in New York State is about 17,000 MW per this NYISO 2023 Report (at page 26), meaning that New York consumes about 150,000 TWh of electricity in a year. (17 x 8760 (hours in a year) = 148,920). 9,000 MW of offshore wind turbines operating at a 30% annual capacity factor will generate 23,652 TWh in a year (9 x 8760 x 0.3 = 23,652). That’s less than a sixth of current consumption. And did I mention that they are also planning to increase demand by 50% or more by forcing the electrification of all automobiles and home heating and cooking? So the 9,000 MW of offshore wind turbines will provide maybe 10% of our electricity needs in the 2030s, at random and often useless times — and that’s assuming that the turbines actually get built.
Forging ahead with its nonsensical and unworkable plan, in 2018-20 New York conducted a series of solicitations for bids from offshore wind developers to put up turbines in various sites off the coast of Long Island. Those solicitations resulted in accepted bids for close to half of the 9,000 MW goal. The big projects were named Sunrise Wind, Beacon Wind, and Empire Wind 1 and 2. Here is a map of where the turbine farms are to be located:
As I reported in this post from October 5, 2023, the prices that the State agreed to pay the developers after the auction were $110.37 per MWh for Sunrise Wind, and $118.38 per MWh for Empire Wind 1.
But then in July 2023 essentially all the developers with accepted offshore wind development contracts backed out of the deals, and demanded price increases averaging about 50%. The Chair of the New York Public Service Commission, Rory Christian, reacted with outrage. My post of October 15, 2023 covered a report of Mr. Christian’s reaction that had appeared in the New York Times. Excerpt:
Mr. Christian added that the state’s ratepayers, who would have borne the cost, could not serve as an “unlimited piggy bank” for companies to tap. “We have a deal,” he said to the developers, calling on them to stand by the terms they agreed to.
Sure. Here was my reaction to Mr. Christian:
Well, Rory, I’ve got news for you: the developers aren’t going to honor the deal. You’re going to have to hold a new auction. And the prices that will be bid will be as high or higher than those just demanded by these developers.
And, as I predicted, they proceeded to hold a new auction. By January, there was word that new bids had been received, but there was no information as to bidders or prices or awards.
Which brings us to the latest news. Last Thursday, February 29, the big announcement appeared on the website of Governor Kathy Hochul, headline “Governor Hochul Announces Two Offshore Wind Project Awards, to Deliver Clean Power in 2026.” From the introduction:
Governor Kathy Hochul today announced the State has conditionally awarded two offshore wind projects from its fourth offshore wind solicitation – a planned 810-megawatt project, Empire Wind 1, (developed by Equinor) and Sunrise Wind, a planned 924-megawatt project (developed by Orsted and Eversource). The competitively selected projects will create more than 800 near-term family-sustaining construction jobs and invest $2 billion in near-term enhanced economic development statewide, including developer-committed investments to support disadvantaged communities. The projects, totaling over 1,700 megawatts of clean energy, will be the largest power generation projects in New York State in over 35 years once they enter operation in 2026, and will continue progress towards achievement of the State’s Climate Leadership and Community Protection Act (Climate Act) goal to develop 9,000 megawatts of offshore wind energy by 2035.
Yes, it’s all happy talk about how great this is. Here’s some more:
“I promised to make New York a place for the renewable energy industry to do business, and we are delivering on that promise,” Governor Hochul said. “Offshore wind is foundational to our fight against climate change, and these awards demonstrate our national leadership to advance a zero-emissions electric grid at the best value to New Yorkers.”
And how about getting President Biden in on the credit:
“Today’s announcement is the latest step forward as President Biden continues to deliver historic progress on growing the American offshore wind industry, creating good-paying union jobs, and advancing our ambitious climate and clean energy goals,” said White House Deputy National Climate Advisor Mary Frances Repko.
Dare we ask how much is actually getting built and at what cost? If you can get past the introductory happy talk, you will finally come to this:
The weighted average all-in development cost of the awarded offshore wind projects over the life of the contracts is $150.15 per megawatt-hour which is on-par with the latest market prices.
And yet you will not find anywhere in this press release any mention of the prices of the previously accepted bids. But you read Manhattan Contrarian, so you know that the previously accepted prices were $110.37/MWh for Sunrise Wind and $118.38/MWh for Empire Wind 1. In other words, despite Mr. Christian’s outrage, the prices have gone up by in excess of 30%. And this is for only 1700 MW of capacity. Previously they had accepted bids for 4300 MW of capacity, and plans for 9000 MW. 1700 MW of offshore wind capacity operating at a 30% +/- capacity factor might provide 2% or so of New York’s electricity needs in the 2030s, and at mostly uselessly intermittent times. What’s happening with the rest of their big plans? No word here.
And what does the cost here mean for consumer utility bills? You can divide the $150/MWh by 1000 and quickly figure out that they are planning to pay $0.15 per kWh as a wholesale price for intermittent electricity at the source. Nothing is included in that for transmission upgrades, backup, or storage to make for a reliable 24/7/365 grid. By the time you add in those extra costs, as the percent of electricity from the wind turbines gets to around 50% it would be amazing if you could get electricity to the consumer for less than $0.50/kWh. And if the percentage of electricity from the wind turbines goes well above 50%, then all bets are off. $1.00/kWh? $2.00? Easily.
Meanwhile, the Energy Information Administration reports here in 2023 (page 6) that the “levelized cost” of electricity from a new combined cycle natural gas plant is under $50/MWh — for dispatchable power with no transmission upgrades, backup or storage needed. That translates into electricity to the consumer of well under $0.20/kWh.
Governor Hochul’s press release actually includes a line as to the costs to the consumer of the newly accepted offshore wind farm bids:
The average bill impact for customers over the life of these projects under these awards will be approximately two percent, or about $2.09 per month.
Talk about deceptive. They give no methodology or assumptions as to how they came up with the cost figure. But it is obvious that it includes just the cost of blending into the grid the new power from these particular turbines, and otherwise using existing transmission lines and existing fossil fuel plants for the backup role. There is no effort whatsoever here or anywhere else in New York’s propaganda to figure out how much it will cost the consumer for electricity when the grid has been converted to all renewables plus massive amounts of some kind of backup or storage that hasn’t even been invented yet.
Memo to Attorney General James: If you have any real interest in prosecuting people who lie about plans to supposedly achieve “net zero” carbon emissions, here is the worst offender of all right under your nose.
Do the democRAT voters in NY realize that they are going to get what they voted for. Good and hard.
The dims would set unachievable and impossible goals?...I can’t believe it.
One can use the National Weather Service site to see that the wind is simply too variable time-wise and location-wise to justify windmills in the region.
As for solar panels, they might be useful if placed in southeast Virginia or further south.
New York hopes to rely heavily on Canadian hydropower, but Canada might prohibit its export, and if Canada believes in the Gore climatology religion, Canada should.
Canada will need the power for themselves.
Deep State hopes to impoverish the middle class.
That’s the real goal.
The only goal.
This helps achieve that.
“Don Quixote” was written more than 400 years ago. Well, they’re still dreamin’ the impossible dream, tilting at windmills.
Governor Hochul Announces $672 Million Electric and Gas Utility Bill Relief for New Yorkers
And then there's LIHEAP...
Green policy is about bankrupting the middle class.
Period.
They’re not tilting at windmills.
They have a plan.
And it’s working.
The entire leftist agenda is clothed in abject fantasy. So it may be a plan; but like Don Quixote’s plan, it’s utterly delusional. And I do not agree that it’s working.
I’ll tell you what: if we lose in November, I’ll admit that their fantasy-based machinations are working. Until then, I’ll stay optimistic.
“Do the democRAT voters in NY realize that they are going to get what they voted for. Good and hard.”
not until they wake up one morning in the cold and dark and face a future of permanent rolling blackouts ...
But hey, it’s green-ish and they got Indian Point shut down so they (think) they did something for the environment.
This state is hella awful.
The gas compressor power plant, relatively small footprint, sits down the road from me.
They’re still litigating it.
Add this to the list of reasons to Escape From New York.
If they aren’t unhappy enough just talking about these “green energy” now, then think what it might be like if they actually went ahead & built them & later people realized what they actually got(or didn’t get) for their money.
Dear Gov. Hochul; If you think you will be fighting “climate change” with these wind generators then you’ll really be amazed what you will end up with.
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