New York rejects wind requests for subsidies

Wind Energy – New York Subsidies

The New York Public Service Commission unanimously rejected requests for increased subsidies by renewable energy developers, including major offshore wind projects.

This decision jeopardizes 25% of the state’s planned renewable energy capacity needed to meet climate goals.

Offshore wind developers including Equinor, bp, Ørsted, and Eversource Energy had sought higher contracted payments, arguing inflation and supply chain issues made projects financially unviable at original prices. But the Commission emphasized upholding competitive procurement policies and limiting ratepayer cost burdens.

The uncertain future of these planned offshore wind farms is a significant blow. New York is aiming to create an offshore wind industry and become a hub for the nascent U.S. sector. Cancelled projects mean potential job losses and stalled progress on new port infrastructure.

The Commission chose to contain costs over subsidies for offshore wind and other projects. Time will tell if this spurs an equitable and cost-effective energy transition.

Original Source: https://ocean-energyresources.com/2023/10/13/new-york-rejects-wind-requests-for-subsidies/