RI's Offshore Wind Strategy in Unraveling — Climate Change Goals ... - GoLocalProv
GoLocalProv | RI’s Offshore Wind Strategy is Unraveling - Climate Change Goals Now Endangered
RI’s Offshore Wind Strategy is Unraveling — Climate Change Goals Now Endangered
Monday, July 24, 2023
Happier times: U.S. Sec. of Energy Jennifer Granholm with Gov. McKee in one of two visits to RI hyping the offshore wind energy PHOTO: GoLocal
With TV cameras in tow, the claim was Rhode Island was leading in the development of offshore wind, but those claims were a stretch.
The Block Island windmills were completed seven years ago. And, it may be another six to seven years before Rhode Island sees another offshore windmill project operational.
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On Tuesday, Pennsylvania-owned Rhode Island Energy (RIE) rejected the bid by Ørsted and Eversource to build an offshore wind project off the coast that would generate 884-MW.
REI is owned by Pennsylvania, Power and Light (PPL).
That project -- named Revolution Wind 2 -- is now dead, and few state officials want to discuss the impact to Rhode Island's renewable energy mandates.
"We’re disappointed that Rhode Island Energy did not select Revolution Wind 2. This project would put Rhode Island’s 100-percent clean energy future in reach, delivering renewable energy to hundreds of thousands of homes and creating more than $2 billion in direct economic benefits to the state, with historic investments in local union jobs, workforce training, ports and the supply chain. We will assess our options for Revolution Wind 2,” said Meaghan Wims, a spokesperson for the project.
Rhode Island officials are scrambling as the mandated deadline on renewable energy is looking less and less realistic. Rhode Island, instead of being a leader in producing renewable energy, is now on a likely path where it will need to buy so-called Renewable Energy Credits — RECs to meet mandates. Those RECs will be expensive and cause the state to be dependent on market fluctuations.
Senate President Dominick Ruggerio has promised a vibrant renewable industry PHOTO: GoLocal
In June of 2022, officials announced Rhode Island "is the first state in the country to commit to 100 percent renewable energy by 2033, the most aggressive renewable energy standard among any U.S. state.”
Ruggerio had repeatedly promised that the now rejected offshore wind project would create thousands of jobs in Rhode Island -- high-paying, union jobs.
Senate President Dominick Ruggerio made bold statements. “Here in the Ocean State, we know that action to address the climate crisis cannot wait. Rhode Islanders are already feeling the effects of climate change, and the risks facing our communities will grow increasingly dire in the years ahead. This legislation sets out a bold but achievable goal and builds on the historic progress we made in 2021 through the Act on Climate. It will keep Rhode Island, home to the nation’s first offshore wind farm, on the forefront of renewable energy innovation. And it will help us harness the power of clean energy as a driver of economic growth and opportunity.”
But Ruggerio’s big promises did not impact REI’s decision.
Block Island offshore wind project PHOTO: Shaun Dakin, Unsplash
“The climate crisis is already affecting communities here in Rhode Island,” said Conservation Law Foundation staff attorney James Crowley. “We need new offshore wind resources to provide clean, renewable energy, and it’s extremely disappointing that the state’s latest procurement process has not resulted in any new development. Ramping up the development of clean energy is a major response to the crisis we’re facing, and the state needs to get moving.”
The only offshore wind project now in development is the smaller previously approved Ørsted and Eversource project.
Governor Dan McKee’s office claimed that the state could still meet the requirements of the 2033 deadline.
"Rhode Island still has the opportunity to pursue increasing offshore wind capacity and as we’ve previously said, we intend to do so. The Administration is committed to meeting our climate goals and we will continue to work towards them," said McKee.
But McKee’s office refused to respond to specific questions about how the 2033 requirements would be achieved in light of the REI decision.
McKee’s Office Refused to Answer Following Questions From GoLocal:
If you start a new RFP, you can't get in the ground quick enough. Then you are having RIE buying RECs at a premium -- hitting your ratepayers and getting none of the benefits of the jobs or being a leader by creating a new industry.
So is the McKee administration's strategy to give up building the industry in RI?
De Facto, if you go with a regional approach, MA will dominate, and the jobs will be in New Bedford -- isn't that a lost opportunity?
Lastly, functionally, isn't a utility in PA now dictating RI's environmental and energy policy?
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RI’s Offshore Wind Strategy is Unraveling — Climate Change Goals Now Endangered
Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.