Favorable regulatory climate, natural attributes like wind speed, shallow waters, proximity to cities with high energy demand play into favorable assessment
Tom Johnson reports for NJ Spotlight:
With costs declining and a favorable regulatory environment, the U.S. offshore wind market will grow rapidly in the coming years, according to Moody’s Investors Service in a new analysis of the sector.
The Northeast, particularly New Jersey, New York, and Massachusetts, should see significant investment in offshore wind, partly with support from policymakers, partly thanks to varied natural attributes, like good wind speed, shallow waters, and proximity to large centers of power demand, according to the analysis.
The analysis could help New Jersey bolster its lagging efforts to tap the technology to accelerate its transition to cleaner energy. Gov. Phil Murphy has established a goal of having 3,500 megawatts of offshore wind capacity by 2030, the most aggressive target in the nation.
“Europe and Asia have been leading the way in developing the 32 gigawatts of offshore wind estimated to come online by 2020,’’ says Leslie Ritter, an assistant vice president and analyst at Moody’s. “But with over 13 gigawatts currently under development, the U.S. is poised to become a more material player in the industry as well.’’
Although prices for offshore wind remain substantially higher than U. S. wholesale power-market prices, forecasts from the National Renewable Energy Laboratory project costs to decline to more competitive ranges in the coming years.
Putting wind on hold
While onshore wind is cheaper than conventional energy power, the cost of offshore wind has hindered development along the Eastern Seaboard. In New Jersey, the Christie administration twice rejected a pilot, 24-megawatt project three miles off Atlantic City because of its projected impact on electric customers, who would pay for the project’s power.
In a sign of an improved regulatory climate, that project, dubbed Fishermen’s Energy, is being revived under a bill (A-2485) moving through the New Jersey Legislature, and scheduled to be taken up this week by committees in both houses.
The bill, part of a package of bills designed to promote a clean-energy agenda in the state, include a measure that would ramp up the renewable energy goals in New Jersey to have 50 percent of its electricity come from such sources by 2030, a target identical to one established in New York.
Read the full story
Like this? Use form in upper right to receive free updates
See popular posts from the last 30 days in right column --- >>
See popular posts from the last 30 days in right column --- >>
