Wohlust: Offshore wind might not be all it’s cracked up to be

The Delaware State News publishes many letters and articles extolling the virtues of offshore wind production. The Wall Street Journal, on Sept. 8, told a different story.

Ørsted, the main developer in our area, relies on debt financing for its projects. Interest rates have gone up, and Moody’s Investors Service downgraded its stock, which has dropped one-third this year. It is asking for more government support (money), as it cannot produce power at the prices specified. Permitting delays and material costs have also increased. It’s not just Ørsted. Shell faces billions in fines for dropping a Massachusetts ocean project that would cost it even more to continue.

Since 2019, the cost of building onshore wind and solar projects has declined 5%, while offshore costs have risen 36%. Technical problems also abound. Older installation vessels can’t handle the new, giant turbine blades and towers, further raising costs. Lazard calculates that land-based solar and wind installation cost is less than $1,500 per kilowatt. Offshore, it’s about $4,000 and rising. Still, government officials and “green” groups continue to push these projects.

Will they (we) continue to pour loan and gift funds into these uneconomical programs? Will customers (us) pay inflated prices for future power generated by these feel-good efforts? Probably “yes” to both.

The political attraction of building offshore is that it avoids the “not in my backyard” objections of neighbors to land-based generators. The ocean creatures don’t have lobbyists to advocate for their interests.

Ron Wohlust

Dagsboro

Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.