{"id":280341,"date":"2023-09-25T13:55:07","date_gmt":"2023-09-25T11:55:07","guid":{"rendered":"https:\/\/climatescience.press\/?p=280341"},"modified":"2023-09-25T13:55:26","modified_gmt":"2023-09-25T11:55:26","slug":"desperate-governors-beg-for-offshore-wind-cost-relief","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=280341","title":{"rendered":"Desperate governors beg for offshore wind cost relief"},"content":{"rendered":"\n
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From \u00a0CFACT<\/a><\/p>\n\n\n\n

By\u00a0David Wojick<\/a>\u00a0<\/p>\n\n\n\n

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Six Atlantic shore Governors are begging the Feds to bail them out of a huge looming offshore wind cost overrun. They sent Biden a joint letter asking for a list of relief measures ranging from tax breaks to revenue sharing.<\/p>\n\n\n\n

The outcome is far from clear but my guess is the largess is unlikely to appear, especially given the ongoing federal budget battles. Maybe later. However most of the requests also likely require major regulatory changes which could take years. They might even take legislation which could be never.<\/p>\n\n\n\n

But the need is urgent as the offshore developers are demanding immediate power price increases around 50% lest they leave for better opportunities elsewhere. They can do this because offshore wind is a global boom. Even mid-income developing countries like Indonesia are talking big offshore numbers.<\/p>\n\n\n\n

Ironically it is this boom that is driving some of the sticker shocking price increases. There is even a shortage of the highly specialized crane ships to erect these huge towers. The supply chain is a seller\u2019s market, at least on paper. Rising interest rates are another big driver.<\/p>\n\n\n\n

The letter is pretty vague but there are basically three kinds of federal relief requested. These are tax credits, revenue sharing and streamlined permitting. I am sure there is lots of lobbying going on, by the developers as well as the Governors. Unfortunately it is all secret so the specific issues are well hidden, making the following brief analysis somewhat speculative.<\/p>\n\n\n\n

The letter is here:\u00a0<\/p>\n\n\n\n