Back in 2010, New Jersey passed the mislabeled “Offshore Wind Economic Development Act” (OWED) authorizing a $100 million taxpayer subsidy to install windmills off the Jersey shore. However, the bill stipulated that any proposal must show a net economic benefit to the state. Suffice it to say, three years later no one has been able to twist the numbers enough to convince us that this scheme would benefit the economy.
In fact one proposal submitted by Fisherman’s Energy was slapped down by an independent auditor for the state who said the plan “would be the most expensive offshore wind power in the world.”
Meanwhile another project that will affect New Jerseyans, as well as federal taxpayers, is also being pushed by the enviro-cronyists: NRG’s Bluewater Wind project, also with a footprint right off our southern coast.
While the net costs of OWED to New Jersey could reach as much as $4 billion, David Kreutzer, Senior Policy Analyst in Energy Economics and Climate Change at The Heritage Foundation’s Center for Data Analysis, calculates that the NRG scheme would costs taxpayers more than $230 million over ten years!
Thanks to the Wind PTC, NRG would get $25 million a year in tax credits while paying only $10.4 million in royalties.
In any event, BOEM estimates that NRG will pay $10.4 million in royalties in the first 10 years. So whichever wholesale price is used hardly matters—taxpayers will still lose over $230 million in the first decade.
And this does not even take into consideration the increased costs to ratepayers on the other end.
Whether it’s the OWED, NRG Bluewater project or the failed Cape Wind in Massachusetts, the fact is wind power (especially offshore wind) cannot survive with taxpayers and ratepayers propping it up.
It’s time to end these subsidies once and for all and unleash a real free market in the energy sector.
Again, CLICK HERE to sign AFP’s action alert letter calling for the repeal of OWED!
And check out AFP’s tweets from today getting the facts out about the folly of offshore wind!