New Yorkers would be forced to pay 2.5 times the market rate For the electricity generated by the wind empire a wind far Independent Financial Analysis.
The Trump administration arrested the construction of the controversial project: 54 turbines in the Atlantic Ocean 14 miles south of Long Island – Last week, saying you need more review. The project has seen a strong support from Governor Kathy Hochul and Mayor Eric Adams.
Trump’s measure was well received by those who claim that the project will overload taxpayers.
“New York are entitled to clean, affordable and reliable energy,” he told The Post Christina Kramer, president of Protect Our Coast Long Island New York. “And this is none of those things.”
The organization had requested the analysis of Edward P. O’Donnell, a nuclear engineer from New Jersey and consultant who spent 35 years directing nuclear plants.
“Empire Wind One received a contract to collect $ 155 for Megavatio Hora (MWH) for its power,” O’Donnell told The Post. “It is a subsidy, because you did not have an empire in Wind One, public service companies would buy buy [power] From the wholesale market to around $ 50 per Megavatio. “
The total amount of the subsidy, said O’Donnell, would be $ 9 billion. The New York Independent System Operator (NYISO), which manages the state electricity grid, has the mandate to buy energy Generated by the offshore wind On cheaper power of nuclear plants OA gas.
The Federal Inflation Reduction Law, signed by former President Joe Biden in 2022, also provides a 30% fiscal loan for wind projects on the high seas that begin construction before January 1, 2026, and additional credits are available to use labor and construction materials of the United States.
“A company that is building an offshore wind project of $ 8 billion, that is what it is costing, you can get half of that reimbursed as a fiscal loan,” O’Donnell said. “That depends on us, federal taxpayers through the country. We are all paying that invoice.”
Congress can repeal the federal tax credit, said O’Donnell, but also expects that to be returned to the consumer.
“If the tax credit was repealed, they would like $ 2 billion of their capital financing. They would return to Nyerda and say, we need another $ 50 per megavatio, or we need $ 210 per speculated megavatio.
O’Donnell points out previous examples of Empire Wind one and another contractor, Sunrise Wind, which is building 84 turbines in the ocean to 30 miles east of Montauk Point, since he has already done this.
In 2019, Nyerda granted a contract to Empire Wind One, owned by the Norwegian company Equinor, at a rate of $ 118 per MWh for 25 years. He also agreed to pay the dawn wind, owned by Orsted, a Danish energy giant, $ 110.37 per MWh for 25 years.
Three years later, both companies wanted rates increases, citing high costs and bottlenecks of the supply chain caused by Covid-19 pandemic.
The applications were rejected by the Public Service Commission of the State of New York, but Nyerda gave them the opportunity to return to their contract and gave them more money.
Nyerda signed developers again with contracts at higher significant prices: $ 155 per MWh for Empire Wind One, an increase of 31% and $ 146 per MWH for dawn, a price increase of 32%.
“The Empire Wind One Rebid Rate Alcayer will total $ 9 billion during the life of the installation,” O’Donnell wrote in his report. “The present value 2024 of these costs of rates higher to the market is $ 6.2 billion, compared to $ 4.4 billion for the original Empire Wind One contract.”
O’Donnell states that New York taxpayers will provide $ 18 billion in subsidies To the two foreign wind companies on the high seas.
With the taxpayer and federal subsidies, O’Donnell says that his research shows that Equinor would see a rate of performance of his investment around 20%, much higher than 9% regulated utility colleagues can generally earn.
“I think you should not earn money with the money of the residents. It is assumed that a public services company is just that: a service that is provided, that is created from our tax dollars in part. The face.
Empire Wind declined to comment on the subsidies. A Nyserda spokesman refused to comment on the economic analysis, but complained about his sponsor.
“Protect Our Coast Long Island is a vocal critic of wind energy on the high seas and has dedicated itself to a strategic political effort to derail the New York wind industry and the important economic opportunities it offers,” said the spokesman by email.
“The interior department staff has bothered the information posed by serious problems regarding the approvals of the project for the wind empire project,” wrote Interior Secretary Doug Burgum in a letter from Wednesday to the Ocean Energy Management Office.
“The approval for the project was carried out by the previous administration without sufficient analysis or consultation,” he added.
Kramer is pleased that the construction has stopped, but added: “I think we would be even more euphoric if they said:” Well, we will only stop them. “
