New Jersey’s nascent offshore wind industry, the pride of the Murphy Administration, is taking on water. Higher costs, environmental damage, and manufacturing short-cuts mean that the promised environmental and economic benefits, which were always a fantasy, mean New Jerseyans will be on the hook for even higher costs.
Let’s start with higher costs. In a report I wrote for the Manhattan Institute in February 2022, I discussed how offshore wind costs were increasing, not decreasing as proponents claimed. Because of increased demand for inputs, including concrete, steel, and the various rare earths required to manufacture turbines, turbine costs were going up. Add to that increased demand for the specialized ships needed to install the newest, gargantuan turbines – 850 tall or more – along with shortages of the undersea cable needed to bring the electricity generated to shore, and the already high prices of New Jersey’s offshore wind contracts would turn out to be too low.
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Jonathan A. Lesser, PhD, is the president of Continental Economics, an economic consulting firm, and an adjunct fellow with the Manhattan Institute. Based on a report.
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