Posted on 08/26/2024 5:16:42 PM PDT by george76
It currently costs NY about $36 per MWH for energy. But the state demanded wind. Let’s discuss the amazing bottom line results.
So Much for So Little
The Wall Street Journal asks Why Is New York Paying So Much for Wind Power?
New York state signed a contract in June to buy electricity generated by two large wind farms, Empire Wind 1 and Sunrise Wind, off the coast of Long Island. The projects are expected to begin in 2026 and 2027, with power delivered to Brooklyn (Empire) and Long Island (Sunrise). The state will pay $155 and $146 per megawatt-hour, respectively. These prices are steep, at least four times the average grid cost paid over the past year.
States agree to pay wind-power operators—known as the “offtake price”—based on a project’s “break-even cost,” the estimated bill for building and operating the wind farm over its useful life. That is undoubtedly part of the problem. The offshore wind business off the East Coast is in turmoil. Operators have canceled projects from Massachusetts to Maryland that were due to be constructed in the next four years. Some have been delayed, while others have renegotiated their contracts at prices 30% to 50% higher than originally promised.
Two widely quoted sources of break-even costs are the U.S. Energy Information Administration and Lazard, an investment bank. In its most recent estimates, the EIA suggests the average break-even cost of offshore wind farms, adjusted to 2024 prices, is $131 per megawatt-hour, not counting government subsidies, and $101 per megawatt-hour after allowing for basic tax credits. The latter figure is what matters, because every offshore wind farm expects to take advantage of investment or production tax credits under the Inflation Reduction Act.
EIA Says Wind is Not Economical
Let’s pause right there because wind is absurd by any measure.
The cost of wind is $131 per MWH without credits and $101 with $30 in tax credits according to the EIA.
A handout of $30 is an 83 percent subsidy (30/36) and the deal still is still nearly 100% per MWH in the red, losing $35 per MWH over the cost of buying energy at market rates.
A Sweetheart Deal
The deal (thank you team Biden and New York), will pay $155 and $146 per megawatt-hour, respectively to Empire Wind 1 and Sunrise Wind.
The owner-operators of the two farms—Equinor for Empire and Orsted for Sunrise—are two of the top five global wind-farm investors and operators. Equinor is Norway’s state oil company, while Orsted previously was Denmark’s.
With a break even cost of $101 (thanks to subsidies), Equinor will make $54 per MWH and Orsted will make a mere $45 per MWH on something whose total cost should be $36 per MWH.
The Journal calculates Equinor and Orsted (foreign corporations) will each receive a total subsidy of more than $3 billion courtesy of U.S. taxpayers.
The Journal asks “Did New York sign an agreement that allows large wind-farm operators to earn unreasonably high after-tax profits at the expense of its residents?”
I believe the math speaks for itself.
Not only will New Yorkers pay over four times the going rate for energy, the US will send $3 billion to foreign companies to do so.
Congrats team Biden and New York State.
Another Green Energy Company Declares Bankruptcy
Meanwhile, Another Green Energy Company Declares Bankruptcy, Thank Biden’s Tariffs
that blows...
Electric vehicles will cost more than $25/gallon comparatively real soon.
Couldn’t happen to nicer people.
I argue this all the time with liberals. I keep telling them that the idea of renewables is nice, because who doesn’t want free energy, but they aren’t ready yet and may never be.
At best, renewables only work on an immediate level, such as a farm for wind, or as a secondary source of power such as a big battery that you charge up. They don’t work as primary sources of power.
The state will pay $155 and $146 per megawatt-hour, respectively.
That is effectively a 430% premium for wind power (for the $155/megawatt power.
NY rate payers should scream bloody murder.
WOW! This is what happens when you let clueless commie SOB government turds make policy and decisions.
It is ALWAYS bad for the people. Morons.
Ahmed’s Battery Swap Shop
EV Batteries are charged up in sunny Florida using solar energy and shipped up north.
Swaps take about as long as filling a tank.
With Ahmed, there’s no massive upfront cost, just a modest monthly lease payment and a competitive swap charge.
And yes, you can use the electricity from your car to light up your house.
Go green with Ahmed.
They should scream bloody murder. Instead they’ll keep voting for Hochul and Her Henchmen.
At that price difference, it’s worthwhile to build a big fan to keep the wind turbine running 24 hours per day.
Who’s pocketing the profits wasn’t it Bob Dylan who sang:
“you got adulterers in churches and pornography in the schools, you got gangsters in power and lawbreakers making rules..
When you gonna wake up and strengthen the things that remain”
Good. “renewable” energy is an asinine scam. If you buy into that and are not either >90yrs old (i.e., don’t give a shite anymore)or A democratic base voter (i.e., that means an IQ < 85); you deserve all the hurt you get.
It is like buying an EV — you are a moron.
And the DC lawyers and "One Worlders" laugh all the way to the bank...
But, the New Yorker's just keep voting for it. So, I guess they get what they deserve...
I like it. It should be at least $500.00 AMWH for them. Stupidity should hurt.
Sounds like price gouging.
The problem is that these producers are such a small percentage of the power produced and consumed that the average consumer will not notice the change when combined with inflation.
Your average rate payer doesn’t pay attention to this sort of news.
$36 -> $101
Inflation Reduction Act
With Harris & Hochul we won’t have to import poor people, they’ll make plenty more domestically.
I agree. New York taxpayers absolutely deserve this—for electing so many democrats!
Kommiela......
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