Salazar’s Big Push for Big Offshore Wind…
Makes no sense from a technological standpoint: http://bit.ly/pyNTIc
Makes no sense from a jobs standpoint: http://bit.ly/mSVSD3
Makes no economic sense from rate or taxpayers' perspectives:
Wed, May 11, 2011
Constellation Opposes Offshore Wind Power Mandates
March 7, 2011 2:40 PM
BALTIMORE (AP) — Constellation Energy says requiring utilities to buy offshore wind power will cost customers billions at the expense of more cost-effective clean-energy alternatives.
PhillyBurbs Posted: Monday, August 1, 2011 12:45 am | Updated: 6:46 pm, Sun Jul 31, 2011.
Offshore wind energy will drive up electricity costs for NJ households and businesses
By Paul Bachman Calkins Media, Inc. | 1 comment
On Aug. 19, 2010, Gov. Chris Christie signed the Offshore Wind Economic Development Act into law. The law orders the state Board of Public Utilities to develop an offshore wind energy certificate program that would support at least 1,100 megawatts of generation from qualified offshore wind projects and provides $100 million in subsidies to potential offshore wind developers. The law requires a cost-benefit analysis that includes a detailed analysis of the impact of the projects on the state’s economy and electricity ratepayers.
The Beacon Hill Institute at Suffolk University in Boston has conducted an analysis of 1,100 megawatts of offshore wind power for New Jersey. We found that these projects would produce costs of $4.793 billion to construct the windmills and connect them to regional electricity and provide backup sources of electricity for times of unfavorable winds. Set against these costs are the benefits, including the value of fuel saved, the reduction in spending on building generating capacity elsewhere, the health and other benefits of lower emissions, and greater energy independence. The projects would provide benefits of $1.544 billion in the form of avoided electricity costs and reduced emission.
These benefits are not sufficient enough, however, to build turbines in New Jersey at this time.
Therefore, the projects would produce a net economic cost of $3.245 billion to New Jersey over the life of the project, which would be passed on to the state’s ratepayers.
The project will increase New Jersey’s electricity prices by an estimated 2.1 percent by 2017. From 2017 to 2036, the average household ratepayer would pay $431 in higher electricity costs, the average commercial ratepayer would pay an extra $3,054, and the average industrial ratepayer would pay an extra $109,335 per year.
These higher energy prices would hurt the purchasing power budgets of New Jersey’s households and businesses by reducing their ability to consume, save and invest, impairing the state economy. We estimate that by 2017 New Jersey would lose an average of 2,219 jobs. Average annual wages would fall by an average of $111 per worker, and real disposable income will fall by an estimated $330 million. Net investments would fall by $48 million.
Offshore wind is more expensive than conventional energy and will drive up the costs of electricity for New Jersey’s households and businesses. Higher electricity costs may be justifiable if the environmental benefits outweigh the costs. Here they do not. Furthermore, it is unclear that the use of renewable resources, especially wind and solar, significantly reduces greenhouse gas emissions due to the need for backup power sources.
The rush to wind energy is flawed. The policy promotes wind energy — costly ones — at the cost of other, more affordable and dependable sources. The New Jersey law puts the state’s competitiveness at risk. These inflated electricity costs will result in New Jersey seeing slower growth in the future, and falling behind current competitor states. Policymakers should pay careful attention to the real danger posed by higher electricity prices and consider alternatives with better prospects for their $100 million investment.
March 11, 2011; Source Offshore Wind Biz: Headline:
KENTISH Flats operator Vattenfall has warned that the offshore wind farm industry must reduce its costs or risk “dying out.”
Speaking at a wind energy event in London on Tuesday, Ole Bigum Nielsen, who heads the UK offshore operations, told the audience: “I think we all agree we have to lower the costs of what we are doing. If we do not succeed, it will be a dying industry.”
Vatenfall runs both the Kentish Flats off Herne Bay and Thanet offshore wind farms off Margate.
September 25, 2010
The Thanet wind farm will milk us of billions
The media remain conspicuously silent about the real price we pay for wind energy, says Christopher Booker.
In all the publicity given to the opening of "the world's largest wind farm" off the Kent coast last week, by far the most important and shocking aspect of this vast project was completely overlooked. Over the coming years we will be giving the wind farm's Swedish owners a total of £1.2 billion in subsidies. That same sum, invested now in a single nuclear power station, could yield a staggering 13 times more electricity, with much greater reliability.
(Next, Peer reviewed, journal published).
'It Is Easy to Be Green — When Someone
Else Pays the Bill'
"Cape Wind stands at the forefront of this new renewable
energy push, one that is based on long-discredited — and, alas,
long-believed — promises. Unfortunately, it is politicians who
are selecting the winners and losers in the renewables game, and
the select few are benefiting at the expense of the many, i.e., the
ratepayers. This is hardly a recipe for economic growth." [cut] continue reading:
Jonathan A. Lesser is founder and president of Continental Economics Inc.
Jonathan A. Lesser, Ph.D.
SUMMARY OF EXPERIENCE
Dr. Jonathan Lesser is the President of Continental Economics, Inc., and has over 25 years of experience working for regulated utilities, government, and as an economic consultant. He has analyzed critical economic and regulatory issues affecting the energy industry, including cost-benefit analysis of transmission, generation, and distribution investment, gas and electric utility structure and operations, generating asset valuation under uncertainty, mergers and acquisitions, cost allocation and rate design, resource investment decision strategies, cost of capital, depreciation, risk management, incentive regulation, economic impact studies of energy infrastructure development, including FERC hydroelectric relicensing applications, and general regulatory policy. [cut] continue reading: http://www.continentalecon.com/lessercv_april2010.pdf
Question: Who will win the offshore wind race?
Answer: Neither the public nor the environment.
The Winners? Meet your wind developers: http://bit.ly/rqCjJx