{"id":271793,"date":"2023-08-06T15:40:29","date_gmt":"2023-08-06T13:40:29","guid":{"rendered":"https:\/\/climatescience.press\/?p=271793"},"modified":"2023-08-06T15:40:43","modified_gmt":"2023-08-06T13:40:43","slug":"cash-inferno-offshore-wind-power-fastest-way-to-squander-countless-billions","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=271793","title":{"rendered":"Cash Inferno: Offshore Wind Power Fastest Way to Squander Countless\u00a0$Billions"},"content":{"rendered":"\n
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From STOP THESE THINGS<\/a><\/p>\n\n\n\n

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In the absence of endless subsidies and guaranteed, fixed-price contracts (set at ludicrously high prices), the purported economic case for wind power never, ever stacks up. And the metrics are far worse out at sea.<\/p>\n\n\n\n

Notwithstanding the $billions in subsidies \u2013 gouged from taxpayers and\/or lumped on power consumers\u2019 crushing power bills \u2013 proposed projects are floundering at sea, and the major turbine manufacturers are well and truly underwater.<\/p>\n\n\n\n

As John Hinderaker outlines below, throwing money at offshore wind power projects makes a cocaine habit look like a canny investment.<\/p>\n\n\n\n

Offshore Follies<\/strong>
Powerline
John Hinderaker
25 June 2023<\/p>\n\n\n\n

There could be a worse way to generate electricity than by implanting giant windmills in the ocean, but it is hard to think what it might be. Not surprisingly, Britain is finding its plans for offshore wind to be illusive: How Britain\u2019s offshore wind industry ran out of puff.<\/p>\n\n\n\n

\n

Championed by politicians as a controversy-free alternative to onshore wind and solar farms, the Government wants offshore wind capacity to surge from 13 gigawatts today to 50 gigawatts by 2030.<\/p>\n<\/blockquote>\n\n\n\n

Why giant turbines in the ocean should be controversy-free is hard to understand. In any event, things are not going well.<\/p>\n\n\n\n

\n

A string of major projects are under threat from spiralling costs, sclerotic planning rules and shrinking subsidies. Industry sources warn that it risks tilting the economics into negative territory. \u201cThings are very hard out there right now,\u201d one source says.<\/p>\n<\/blockquote>\n\n\n\n

\u201cNegative territory\u201d in this context means that government subsidies are not large enough, and need to be increased.<\/p>\n\n\n\n

\n

The malaise is triggering fresh questions about whether the Government\u2019s 2030 target is still achievable \u2013 and if the long\u2013assumed maxim that offshore wind costs will keep falling can hold.<\/p>\n<\/blockquote>\n\n\n\n

There is no significant element of offshore wind\u2019s costs that should be expected to decline, and increasing government-driven demand for the minerals of which wind turbines consume vast amounts will inevitably cause those prices to rise.<\/p>\n\n\n\n

\n

Britain\u2019s offshore wind industry exploded over the past decade, with most development concentrated off the east coasts of Scotland and England. Capacity has grown tenfold since 2010, when it stood at just 1.3 gigawatts, with ever-bigger turbines boosting output.<\/p>\n\n\n\n

One example is Dogger Bank, a phased development in the North Sea that will eventually generate enough power for 6 million homes.<\/p>\n<\/blockquote>\n\n\n\n

It would be more accurate to say that if completed, it will occasionally generate enough power for 6 million homes. Wind turbines create electricity 35% to 40% of the time. Most of the time, another source will need to be found.<\/p>\n\n\n\n

\n

But rising supply chain costs globally \u2013 fueled by energy prices that jumped after the Ukraine war \u2013 have slammed the breaks on this progress.<\/p>\n<\/blockquote>\n\n\n\n

But wait! The energy prices that \u201cjumped after the Ukraine war\u201d were those for natural gas and gasoline. Why would that impact the supply chain for wind turbines? Can\u2019t you just use wind energy to run the factories that produce wind turbines?<\/p>\n\n\n\n

Just kidding. You can\u2019t run a factory on electricity that is AWOL 60% to 65% of the time. Reliable energy sources will always be needed to manufacture unreliable energy sources. Although why you would want to do that is anyone\u2019s guess.<\/p>\n\n\n\n

Apparently everyone is losing money on wind turbines:<\/p>\n\n\n\n

\n

General Electric\u2019s renewables business, which makes the 260 metre-tall Haliade X turbines used at Dogger Bank, reported a $2.2bn (\u00a31.7bn) loss in 2022. The division has been loss-making for eight straight quarters.<\/p>\n\n\n\n

Rival manufacturers Siemens Gamesa, Vestas and Nordex also posted further cumulative losses of \u20ac3bn in the same year, notes Kathryn Porter, an independent analyst at energy consultancy Watt Logic.<\/p>\n\n\n\n

\u201cThere has been this narrative, that wind farm costs are falling and will keep falling, but the reality is these prices are too low.<\/p>\n\n\n\n

\u201cTurbine manufacturers have effectively been selling at a loss \u2013 and those losses have become huge now.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Wind energy is a sinkhole for money. The only solution is more government subsidies. In that regard, the Brits are jealous of us Americans, who are going deeper into debt to keep the \u201cgreen\u201d money machine going:<\/p>\n\n\n\n

\n

Many of these problems are not unique to the UK. But they are colliding with domestic issues, including the slow planning system and shrinking British subsidies \u2013 which now look even meaner when compared to those being showered on companies in the US through Joe Biden\u2019s Inflation Reduction Act.<\/p>\n<\/blockquote>\n\n\n\n

Thanks, Joe. Another problem is that giant wind turbines anchored in the seabed don\u2019t actually work well, even when \u201cworking\u201d is defined as 35% production:<\/p>\n\n\n\n

\n

The \u201cbigger is better\u201d approach to turbines is leading to more failures, costing manufacturers more in warranty claims, Porter says.
***<\/p>\n\n\n\n

In an effort to cut costs, some developers are attaching the turbines using cheaper foundations on the sea floor, the executive adds.<\/p>\n\n\n\n

\u201cOffshore wind is not the Nirvana that everybody thinks it is,\u201d they add. \u201cThe risks are enormous. And the rewards are not very good.<\/p>\n\n\n\n

\u201cEveryone is going for the biggest turbines, the cheapest foundations, and they\u2019ve all gone for cabling solutions that mean if you get a failure, you could lose the wind farm.\u201d<\/p>\n<\/blockquote>\n\n\n\n

I think that in 25 years, offshore wind will be seen as one of the worst follies in the history of technology. Even now, a few are asking good questions:<\/p>\n\n\n\n

\n

[F]or some, these problems raise much bigger questions about subsidies for offshore wind generally.<\/p>\n\n\n\n

\u201cWe are 20 years on from when we started subsidising offshore wind, yet we are still having to do it\u201d, says Porter at Watt Logic.<\/p>\n\n\n\n

\u201cIf you are meant to be supporting a nascent technology until it gets to maturity, then subsidies should eventually fall to zero over time. If that is not your goal, then what is the point of these subsidies now?\u201d<\/p>\n<\/blockquote>\n\n\n\n

The real point is the biggest transfer of wealth in world history, but don\u2019t hold your breath waiting for anyone to say that out loud.
Powerline<\/strong><\/em><\/a><\/p>\n\n\n\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

Can\u2019t you just use wind energy to run the factories that produce wind turbines?
\nJust kidding. <\/p>\n","protected":false},"author":121246920,"featured_media":271806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818154,691821639,691818396,691820620,691818299,691821638],"class_list":{"0":"post-271793","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-net-zero","9":"tag-nordex","10":"tag-offshore-wind-power","11":"tag-siemens-gamesa","12":"tag-subsidies","13":"tag-vestas","15":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0sea-4060902_1920.jpg?fit=1920%2C902&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-18HL","jetpack-related-posts":[{"id":379113,"url":"https:\/\/climatescience.press\/?p=379113","url_meta":{"origin":271793,"position":0},"title":"Denmark Goes Full\u00a0Miliband","author":"uwe.roland.gross","date":"05\/21\/2025","format":false,"excerpt":"Just as in Britain. nobody can afford to build offshore wind farms in Denmark unless they are guaranteed obscene subsidies.","rel":"","context":"In \"Denmark\"","block_context":{"text":"Denmark","link":"https:\/\/climatescience.press\/?tag=denmark"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/0ChatGPT-Image-21.-Mai-2025-08_52_46.png?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/0ChatGPT-Image-21.-Mai-2025-08_52_46.png?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/0ChatGPT-Image-21.-Mai-2025-08_52_46.png?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/0ChatGPT-Image-21.-Mai-2025-08_52_46.png?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":363795,"url":"https:\/\/climatescience.press\/?p=363795","url_meta":{"origin":271793,"position":1},"title":"Record \u00a32.4 Billion in CfD Subsidies Paid Out in 2024","author":"uwe.roland.gross","date":"01\/29\/2025","format":false,"excerpt":"Hot on the heels of the record payments made under the Feed-in-Tariff scheme in the year to end March 2024, the data is now available for subsidies paid under the Contract for Difference Scheme (CfDs) in calendar year 2024. The data comes from the Low Carbon Contract Company (LCCC). The\u2026","rel":"","context":"In \"Contract for Difference Scheme (CfDs)\"","block_context":{"text":"Contract for Difference Scheme (CfDs)","link":"https:\/\/climatescience.press\/?tag=contract-for-difference-scheme-cfds"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/01\/0Untitled-design.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/01\/0Untitled-design.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/01\/0Untitled-design.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/01\/0Untitled-design.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/01\/0Untitled-design.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":275821,"url":"https:\/\/climatescience.press\/?p=275821","url_meta":{"origin":271793,"position":2},"title":"Offshore Wind Subsidies On Course To Hit \u00a35bn This\u00a0Year","author":"uwe.roland.gross","date":"08\/27\/2023","format":false,"excerpt":"Latest data shows that offshore wind is once again being paid massive amounts in subsidies, as the market price of electricity gradually sinks back nearer to historic rates.","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0Offshore-Wind-Construction-1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0Offshore-Wind-Construction-1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0Offshore-Wind-Construction-1.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0Offshore-Wind-Construction-1.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/08\/0Offshore-Wind-Construction-1.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":344739,"url":"https:\/\/climatescience.press\/?p=344739","url_meta":{"origin":271793,"position":3},"title":"Renewables Subsidies Hit New August Record","author":"uwe.roland.gross","date":"10\/01\/2024","format":false,"excerpt":"The Low Carbon Contract Company (LCCC) manages the Contracts for Difference (CfD) subsidy scheme and\u00a0publishes data\u00a0to show how much it costs us. The data is usually published about 10 days in arrears and sometimes is adjusted. Now, we have the full data for August 2024, and it has settled down\u2026","rel":"","context":"In \"Contracts for Difference (CfD)\"","block_context":{"text":"Contracts for Difference (CfD)","link":"https:\/\/climatescience.press\/?tag=contracts-for-difference-cfd"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0philippines-renewable-energy-continues-to-boom.jpg?fit=1024%2C684&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0philippines-renewable-energy-continues-to-boom.jpg?fit=1024%2C684&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0philippines-renewable-energy-continues-to-boom.jpg?fit=1024%2C684&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/10\/0philippines-renewable-energy-continues-to-boom.jpg?fit=1024%2C684&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":341357,"url":"https:\/\/climatescience.press\/?p=341357","url_meta":{"origin":271793,"position":4},"title":"Offshore trojan horses","author":"uwe.roland.gross","date":"09\/02\/2024","format":false,"excerpt":"In July, the U.S. Department of Interior greenlighted large offshore wind farms in New Jersey and Maryland. Once the financial agreements are in place, New Jersey\u2019s Atlantic Shores and Maryland\u2019s MarWin and Momentum will join the two large wind farms in New York approved in June. These projects will receive\u2026","rel":"","context":"In \"Bureau of Ocean Energy Management (BOEM)\"","block_context":{"text":"Bureau of Ocean Energy Management (BOEM)","link":"https:\/\/climatescience.press\/?tag=bureau-of-ocean-energy-management-boem"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0Wind-turbines-Dutch-Coast.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0Wind-turbines-Dutch-Coast.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0Wind-turbines-Dutch-Coast.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0Wind-turbines-Dutch-Coast.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0Wind-turbines-Dutch-Coast.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":378010,"url":"https:\/\/climatescience.press\/?p=378010","url_meta":{"origin":271793,"position":5},"title":"Miliband plots surge in wind farm subsidies to rescue net\u00a0zero","author":"uwe.roland.gross","date":"05\/12\/2025","format":false,"excerpt":"As we know, Orsted cancelled their massive Hornsea 4 offshore wind farm the other day. This has left Mad Miliband\u2019s 2030 Clean Power policy in tatters.","rel":"","context":"In \"Climate change\"","block_context":{"text":"Climate change","link":"https:\/\/climatescience.press\/?tag=climate-change"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/05\/OIG-2023-11-13T120832.243.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/271793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=271793"}],"version-history":[{"count":12,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/271793\/revisions"}],"predecessor-version":[{"id":271808,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/271793\/revisions\/271808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/271806"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=271793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=271793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=271793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}