By Jonathan A. Lesser
Key Manhattan Institute
Findings:
1. Offshore wind is not cost-effective, and the forecasts of rapidly declining costs through increasing economies of scale are unrealistic.
2. Absent continued subsidies—such as state mandates for offshore generation and renewable energy credits, which force electric utilities to sign long-term agreements with offshore wind developers at above-market prices—it is unlikely that any offshore wind facilities will be developed.
3. These subsidies, along with the need for additional transmission infrastructure and backup sources of electricity, will increase the cost of electricity for consumers and reduce economic growth. The actual costs of offshore wind projects borne by electric ratepayers and taxpayers are likely to be greater than advertised. Continue reading “The Dismal Economics for Offshore Wind”