Wind Cancellation is a Major Hiccup. But Don’t Overthink it.

Growing pains.
Meanwhile, onward.

New York Times:

Orsted, the Danish company that is a leading offshore wind farm developer, said on Wednesday that it would scrap plans to build two wind farms off the coast of New Jersey, forcing the company to write off as much as $5.6 billion.

The move was further evidence that offshore wind in the United States is going through a major shakeout, crimping Biden administration plans to make the industry a critical component of plans to reduce greenhouse gas emissions. High inflation and soaring interest rates are making planned projects that looked like winners several years ago no longer profitable.

“The world has in many ways, from a macroeconomic and industry point of view, turned upside down,” Mads Nipper, Orsted’s chief executive, said on a call with reporters on Wednesday. The two projects, known as Ocean Wind 1 and 2, were destined to provide green energy to New Jersey.

Offshore wind and other parts of the renewable industry have hit some snags in Europe, especially in Britain, but Mr. Nipper said the problems were more acute in the United States, because early contracts lacked protection from inflation and developers incurred high costs because of delays in approvals during the Trump administration.

Orsted is not alone in encountering hazards in the fledgling offshore market in the United States.

On Tuesday, BP, the London-based energy giant, said it would write down $540 million on three planned wind projects off New York, after the state authorities declined to renegotiate their terms. BP says it is assessing future plans for the schemes in light of the decision.

In its announcement, Orsted said it would move forward with a $4 billion project called Revolution Wind intended to supply power to consumers in Rhode Island. And other developers have projects under construction, like Vineyard Wind, which will eventually have 62 turbines in the waters off Martha’s Vineyard, Mass.

Offshore wind is not dead, but the industry and its backers are certainly learning some harsh lessons. The ambitions of the Biden administration and states along the East Coast like New York, New Jersey and Massachusetts to install large amounts of clean electric power generation through offshore wind in the coming decades are likely to be set back.

Context.

Environment America:

RICHMOND, Va. — The U.S. Department of the Interior approved the building of the nation’s largest wind farm on Tuesday. Dominion Energy’s Coastal Virginia Offshore Wind project will include up to 176 turbines, located roughly 27 miles off the coast of Virginia Beach. The project is the largest offshore wind project in the United States approved to date. Dominion says once the project is completed in 2026, it is expected to produce enough electricity to power 660,000 homes.

In response to this announcement: Environment Virginia Research & Policy Center State Director Elly Boehmer released the following statement:

“Global warming impacts everyone and the Southeast is particularly vulnerable, with sea levels rising and extreme weather. We are thrilled to see this project approved to further establish this region as an offshore wind and renewable energy leader. 

“In 2020, Virginia became the seventh state in the country to commit to 100% clean energy by mid-century with the passing of the Virginia Clean Economy Act. To achieve this goal as fast as possible, we need to invest in clean, renewable energy. Spurring the development of offshore wind is essential. We applaud the approval of this project as it moves Virginia closer to our commitment to transition to 100% clean, renewable energy — the most important action we can take to protect our climate.” 

Environment America Research and Policy Center’s Senior Director for 100% Renewable Energy Johanna Neumann released the following statement:

“The sooner America taps its offshore wind resources, the better for our health, our environment and future generations. Virginia’s offshore continental shelf is a blustery place. By placing 176 turbines where ocean winds are strong and consistent, this project will produce enough electricity to power more than 600,000 homes, day in and day out. We don’t have to drill or mine for wind. It just shows up, every day, for free.”

Nantucket Current:

The first of Vineyard Wind’s 62 turbines has been assembled in the waters southwest of Nantucket.

These photos were taken today from Madaket Beach with 400mm and 600mm camera lenses, and the images are cropped to show the view of the turbine in the distance. This turbine will be one of the closest to Nantucket in Vineyard Wind’s lease area. While they will certainly be visible, Vineyard Wind’s turbines won’t appear this large to the naked eye.

The turbine components left the port of New Bedford in early September, squeezing through the city’s hurricane barrier behind a tugboat, and heading out to sea. The assembly was delayed due to weather conditions over the past month. 

At the tip of its blade, the GE Haliade-X turbine reaches 837 feet in the air, nearly as tall as the Eiffel Tower.