{"id":283300,"date":"2023-10-14T19:44:13","date_gmt":"2023-10-14T17:44:13","guid":{"rendered":"https:\/\/climatescience.press\/?p=283300"},"modified":"2023-10-14T19:44:16","modified_gmt":"2023-10-14T17:44:16","slug":"regulatory-rebuff-blow-to-offshore-wind-projects","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=283300","title":{"rendered":"Regulatory Rebuff Blow to Offshore Wind Projects"},"content":{"rendered":"\n
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The state denial could force some developers whose contracts may not cover project costs to scrap plans to sell power to customers in New York, cancel or delay projects, as happened with a couple of offshore wind projects in\u00a0Massachusetts<\/a>.\u00a0<\/em><\/strong><\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

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When the breezy dreams of offshore wind giants met the rocky shores of regulation.<\/strong><\/em><\/p>\n\n\n\n

In a move that left offshore wind giants like Orsted, Equinor, and BP staggering, New York\u2019s utility regulator has blown away pleas for contract relief.<\/p>\n\n\n\n

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\u201cNearly all of New York\u2019s pacesetting 4.3GW of contracted offshore wind capacity is now in limbo following rejection of developers\u2019 pleas for inflation relief by the state\u2019s utility regulator.\u201d<\/p>\n<\/blockquote>\n\n\n\n

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https:\/\/www.rechargenews.com\/wind\/blow-to-orsted-equinor-and-bp-as-new-york-rejects-pleas-for-offshore-wind-contract-relief-leaving-4gw-in-limbo\/2-1-1534223<\/a><\/figcaption><\/figure>\n\n\n\n

Developers\u2019 Substantial Requests Denied<\/strong><\/p>\n\n\n\n

The developers, caught in the turbulent winds of cost overruns, sought increases to offtake contracts by a staggering 55%. However, the PSC was not swayed by their arguments.<\/p>\n\n\n\n

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\u201cNew York Public Service Commission (PSC) denied petitions by the state\u2019s two offshore wind developers, joint ventures (JVs) of Equinor-BP and Orsted-Eversource, for increases to offtake contracts as high as 55%, which one PSC member reportedly described as \u2018breathtaking\u2019.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Ratepayer Impact: A Central Concern<\/strong><\/p>\n\n\n\n

The PSC stood its ground, prioritizing the interests of ratepayers over the inflation woes of developers. The commission emphasized that the proposed contract increases were not in line with its policy objectives.<\/p>\n\n\n\n

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\u201cRegulator said cost hikes of up to 55% would have substantial ratepayer impacts and were \u2018fundamentally inconsistent\u2019 with commission policy.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The Uncertain Path Ahead<\/strong><\/p>\n\n\n\n

The decision leaves a significant portion of New York\u2019s offshore wind capacity in a state of uncertainty. The ambitious plans of these offshore developers now seem to be at the mercy of regulatory scrutiny and economic practicality. The future trajectory of these projects remains unclear amidst this regulatory challenge.<\/p>\n\n\n\n

Conclusion: Navigating the Regulatory Landscape<\/strong><\/p>\n\n\n\n

The PSC\u2019s decision underscores an interplay of economic considerations and, (finally!) some regulatory prudence in the renewable energy sector. Developers now, perhaps for the first time, face the task of advancing their projects amidst economic fluctuations, having to with regulatory expectations and safeguarding ratepayer interests. We\u2019ll see how many walk away.<\/p>\n\n\n\n

Source force this article: https:\/\/www.rechargenews.com\/wind\/blow-to-orsted-equinor-and-bp-as-new-york-rejects-pleas-for-offshore-wind-contract-relief-leaving-4gw-in-limbo\/2-1-1534223<\/a><\/p>\n\n\n\n

HT\/david d for sending me official decision below.<\/p>\n\n\n\n

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