{"id":341357,"date":"2024-09-02T13:59:04","date_gmt":"2024-09-02T11:59:04","guid":{"rendered":"https:\/\/climatescience.press\/?p=341357"},"modified":"2024-09-02T13:59:07","modified_gmt":"2024-09-02T11:59:07","slug":"offshore-trojan-horses-2","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=341357","title":{"rendered":"Offshore trojan horses"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From CFACT<\/a><\/p>\n\n\n\n

By Gordon Hughes<\/a><\/p>\n\n\n\n

In July, the U.S. Department of Interior greenlighted large offshore wind farms in New Jersey<\/a> and Maryland<\/a>. 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 huge, multibillion-dollar subsidies from the federal government and electricity ratepayers. What benefits will New Jersey and Maryland enjoy from this flood of money?<\/p>\n\n\n\n

To answer this question, it is best to recall the classic warning of the Trojan Horse legend,  \u201cBeware of Greeks bearing gifts\u201d\u2014in other words, the hidden dangers of accepting something that seems too good to be true. New York State ignored that warning when it agreed to pay very high prices for the electricity to be supplied from its new offshore wind farms\u2014Empire Wind 1 and Sunrise Wind\u2014located off the coast of Long Island.<\/p>\n\n\n\n

In announcing the final agreements, New York Governor Kathy Hochul triumphantly claimed<\/a> that the new projects would create more than 800 jobs during the construction phase and deliver more than $6 billion in economic benefits for the state over 25 years.<\/p>\n\n\n\n

Rather less emphasis was given to the fact that New York will pay an average price of over $150 per MWh (megawatt hour) for the electricity generated by Empire Wind 1 and Sunrise Wind.That\u2019s more than four<\/em> times<\/em> the average wholesale price of electricity in New York during 2023\u201324, $36 per MWh. The total annual premium over the wholesale market price for the power from these wind farms will be about $520 million per year at 2024 prices. Over 25 years, New York ratepayers will be paying about $13 billion for alleged benefits of $6 billion.<\/p>\n\n\n\n

That is not all. Thanks to tax credits, U.S. taxpayers will cover at least 40% of the costs of constructing the wind farms. At a minimum cost of $5.5 million per MW (million watts) of capacity, the total federal subsidy for New York\u2019s two wind farms will be at least $3.8 billion.<\/p>\n\n\n\n

What about jobs and other economic benefits?  A study<\/a> prepared for Equinor, the owner of Empire Wind 1, and submitted to the federal Bureau of Ocean Energy Management (BOEM) claimed that it would directly generate 180 annual jobs in New York during the six-year construction phase. The study estimated another 60 annual jobs due to the indirect employment effect, i.e., extra employment in the supply chain for the project.<\/p>\n\n\n\n

A more reasonable estimate for the two projects together would be 515 annual jobs, not 800. The total contribution to New York State\u2019s gross value added (the equivalent of GDP at the state level) during the construction of both projects would be less than $450 million, based on the report<\/a> submitted to BOEM. Similar calculations for annual operating and maintenance (O&M) costs suggest an annual contribution of about $24 million to gross value-added or about $600 million over 25 years.<\/p>\n\n\n\n

Rather than the benefits of $6 billion over 25 years touted by Governor Hochul, a realistic assessment would be closer to $1.1 billion at 2024 prices. In any event, residents will be paying a cumulative premium of $13 billion for  the electricity these projects will generate.<\/p>\n\n\n\n

Moreover, the additional jobs claimed<\/a> for the project are concentrated heavily in the final year of construction\u2014and the largest share (47%) consists of professional services. Overwhelmingly, these are jobs for people who would otherwise be working on other assignments.<\/p>\n\n\n\n

The economic benefits of the two offshore wind farms are much lower than claimed by the governor and the jobs are, in large part, temporary assignments for professional services staff. Promoting business for consulting firms may be considered a desirable outcome by Ms. Hochul. Still, the very high financial burden will be borne by almost the entire population of the state.<\/p>\n\n\n\n

Stepping back from the New York projects, the Biden administration\u2019s overall goal is to reach a target of 30 GW<\/a> (billion watts) of offshore electricity generation capacity by 2030 or shortly thereafter. That is equivalent to 17 times the capacity of the combined Empire Wind 1 and Sunrise Wind projects. Detailed costs and financial arrangements vary, but the figures above suggest that the recurring premium paid by electricity ratepayers in states with offshore wind farms will be about $9 billion per year. The benefits of new job creation and incomes from capital and O&M expenditures are likely to be less than $800 million per year.<\/p>\n\n\n\n

In addition to the very large subsidies paid for from ultra-high electricity bills, federal taxpayers will contribute about $65 billion via tax credits if the Biden administration\u2019s offshore wind target is met. While the subsidies for individual projects may not seem outrageous, the commitment of money to subsidize offshore generation is about $870 for every member of the country\u2019s population. This may be spread over 25 years, but it is a huge liability for one very small element of U.S. programs to support renewable energy.<\/p>\n\n\n\n

This article originally appeared at Real Clear Energy<\/a><\/em><\/p>\n\n\n\n

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

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 huge, multibillion-dollar subsidies from the federal government and electricity ratepayers. What benefits will New Jersey and Maryland enjoy from this flood of money?<\/p>\n","protected":false},"author":121246920,"featured_media":341358,"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":[691820979,691818656,691820514,691818340],"class_list":{"0":"post-341357","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-bureau-of-ocean-energy-management-boem","9":"tag-electricity","10":"tag-high-prices","11":"tag-offshore-wind-farms","13":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0Wind-turbines-Dutch-Coast.jpg?fit=2508%2C1672&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1qNL","jetpack-related-posts":[{"id":341283,"url":"https:\/\/climatescience.press\/?p=341283","url_meta":{"origin":341357,"position":0},"title":"Offshore Trojan Horses","author":"uwe.roland.gross","date":"02\/09\/2024","format":false,"excerpt":"In July, the U.S. Department of Interior\u00a0greenlighted\u00a0large offshore wind farms in\u00a0New Jersey\u00a0and\u00a0Maryland. 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 huge, multibillion-dollar subsidies from the\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\/0p-90920419-biden-new-jersey-offshore-wind.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0p-90920419-biden-new-jersey-offshore-wind.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0p-90920419-biden-new-jersey-offshore-wind.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0p-90920419-biden-new-jersey-offshore-wind.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/09\/0p-90920419-biden-new-jersey-offshore-wind.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":402004,"url":"https:\/\/climatescience.press\/?p=402004","url_meta":{"origin":341357,"position":1},"title":"The Lone GOP Governor Glenn Youngkin Opposing Trump\u2019s War on Offshore Wind","author":"uwe.roland.gross","date":"13\/09\/2025","format":false,"excerpt":"President Trump has sought to halt the construction of five giant wind farms off the coasts of Maryland, Massachusetts, New York, New Jersey and Rhode Island \u2014 all states run by Democrats.","rel":"","context":"In \"Coastal Virginia Offshore Wind\"","block_context":{"text":"Coastal Virginia Offshore Wind","link":"https:\/\/climatescience.press\/?tag=coastal-virginia-offshore-wind"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMMGwgtz4oxPzExfw-qW-tWKKiYB7L18bLGTtpgd7Fb7JGRpzzTAAsfkS_k0giJg8a8pR1wUFBgea2fH_u4U3BWXO7TdpjD-seGribej2lrjHb-M6KT_zh_Tg04KW_fsxSlJG68wiFE6Ayb8FZLXAA3Q64iiQ.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":296725,"url":"https:\/\/climatescience.press\/?p=296725","url_meta":{"origin":341357,"position":2},"title":"Pile Driving: Offshore Wind\u2019s Ecological Problem (Popper interview in Phys.Org)","author":"uwe.roland.gross","date":"18\/01\/2024","format":false,"excerpt":"In Phys.Org, Emily Nunez (University of Maryland) recently interviewed Arthur N. Popper, professor emeritus, University of Maryland\u2019s Department of Biology, a specialist in the ecological impacts of underwater sound.","rel":"","context":"In \"Emily Nunez\"","block_context":{"text":"Emily Nunez","link":"https:\/\/climatescience.press\/?tag=emily-nunez"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/zScreenshot-2023-11-03-111148-1024x611-3.webp?fit=1024%2C611&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/zScreenshot-2023-11-03-111148-1024x611-3.webp?fit=1024%2C611&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/zScreenshot-2023-11-03-111148-1024x611-3.webp?fit=1024%2C611&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/01\/zScreenshot-2023-11-03-111148-1024x611-3.webp?fit=1024%2C611&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":287228,"url":"https:\/\/climatescience.press\/?p=287228","url_meta":{"origin":341357,"position":3},"title":"Offshore U.S. Wind: Childish Energy Policy","author":"uwe.roland.gross","date":"09\/11\/2023","format":false,"excerpt":"BP's top renewables executive said last week that the U.S. offshore wind industry is \"fundamentally broken.\u201d If anything, the Big Wind industry appears to be in even deeper financial distress. From\u00a0Master Resource By Robert Bradley Jr. \u201cThe Biden administration\u2019s preposterous plan to\u00a0establish\u00a030,000 megawatts of nameplate Offshore Wind capacity by 2030\u2026","rel":"","context":"In \"\u00d8rsted\"","block_context":{"text":"\u00d8rsted","link":"https:\/\/climatescience.press\/?tag=orsted-2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0wind-markets-update-main-photo.jpg?fit=1200%2C846&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0wind-markets-update-main-photo.jpg?fit=1200%2C846&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0wind-markets-update-main-photo.jpg?fit=1200%2C846&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0wind-markets-update-main-photo.jpg?fit=1200%2C846&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0wind-markets-update-main-photo.jpg?fit=1200%2C846&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":401959,"url":"https:\/\/climatescience.press\/?p=401959","url_meta":{"origin":341357,"position":4},"title":"Interior Secretary Doug Burgum said offshore wind farms have no future in the U.S. under Trump administration","author":"uwe.roland.gross","date":"13\/09\/2025","format":false,"excerpt":"The Department of the Interior is \u201ctaking a deep look\u201d at five offshore wind farms that are under construction in the U.S., Burgum said Wednesday without naming the projects.","rel":"","context":"In \"CNBC\"","block_context":{"text":"CNBC","link":"https:\/\/climatescience.press\/?tag=cnbc"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMKsuaxrduVHdJL5uLNKDXVLQLGgxH0cilE-ahkMpOZ-lVsxiTg29A80SFYD44_Qa26aAoMP8ClYsmcdMwlfrETpx_Fv_t-Etb_i4VDXW5lUPmTGfDbV6g9r2oneNev-4gU6HnXnUwSMH56dv2nYh-nH36iYg.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMKsuaxrduVHdJL5uLNKDXVLQLGgxH0cilE-ahkMpOZ-lVsxiTg29A80SFYD44_Qa26aAoMP8ClYsmcdMwlfrETpx_Fv_t-Etb_i4VDXW5lUPmTGfDbV6g9r2oneNev-4gU6HnXnUwSMH56dv2nYh-nH36iYg.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMKsuaxrduVHdJL5uLNKDXVLQLGgxH0cilE-ahkMpOZ-lVsxiTg29A80SFYD44_Qa26aAoMP8ClYsmcdMwlfrETpx_Fv_t-Etb_i4VDXW5lUPmTGfDbV6g9r2oneNev-4gU6HnXnUwSMH56dv2nYh-nH36iYg.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMKsuaxrduVHdJL5uLNKDXVLQLGgxH0cilE-ahkMpOZ-lVsxiTg29A80SFYD44_Qa26aAoMP8ClYsmcdMwlfrETpx_Fv_t-Etb_i4VDXW5lUPmTGfDbV6g9r2oneNev-4gU6HnXnUwSMH56dv2nYh-nH36iYg.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/09\/AQMKsuaxrduVHdJL5uLNKDXVLQLGgxH0cilE-ahkMpOZ-lVsxiTg29A80SFYD44_Qa26aAoMP8ClYsmcdMwlfrETpx_Fv_t-Etb_i4VDXW5lUPmTGfDbV6g9r2oneNev-4gU6HnXnUwSMH56dv2nYh-nH36iYg.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":340326,"url":"https:\/\/climatescience.press\/?p=340326","url_meta":{"origin":341357,"position":5},"title":"U.S. Offshore Wind: The Struggle Continues","author":"uwe.roland.gross","date":"22\/08\/2024","format":false,"excerpt":"This post updates the financial troubles of Denmark\u2019s \u00d8rsted, recent BOEM auctions, and pushback against Maryland governor Wes Moore. Today, operational offshore wind capacity is less than 50 megawatts versus the Biden-Harris Administration goal of 30,000 MW by 2030.","rel":"","context":"In \"Biden-Harris Administration\"","block_context":{"text":"Biden-Harris Administration","link":"https:\/\/climatescience.press\/?tag=biden-harris-administration"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0offshore-wind-farm-anholt-denmark-orsted.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0offshore-wind-farm-anholt-denmark-orsted.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0offshore-wind-farm-anholt-denmark-orsted.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0offshore-wind-farm-anholt-denmark-orsted.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/08\/0offshore-wind-farm-anholt-denmark-orsted.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/341357","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=341357"}],"version-history":[{"count":3,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/341357\/revisions"}],"predecessor-version":[{"id":341361,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/341357\/revisions\/341361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/341358"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=341357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=341357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=341357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}