Not getting cheaper

Wind power executives worry over US offshore ambitions

The Biden administration wants to spark an American offshore wind power boom, growing the industry from less than 1 gigawatt today to 30GW by the end of the decade — enough to serve 10mn homes.

But executives are increasingly concerned that a myriad of challenges facing the sector are pushing that target beyond reach: permitting is too slow, leases are too expensive, equipment is in short supply and inflation is soaring, they say.
https://archive.ph/mZfbk
DB2

Personally I prefer solar over wind, no moving parts, no noise, more distributed!

The Captain

5 Likes

Every industry wants its thumb on the scale. That does not mean their thumb is honest.

It would seem that the IRA would put a big thumb on the scale in favor of the wind industry.

DB2

2 Likes

Good…but the wind guys can go through the process quite readily. The permits will flow.

The squeaky wheel gets the grease.

Not according to the FT article:

"Obtaining permits was a central worry for many developers gathered at the Providence event, who said environmental reviews needed to be speedier and carried out with more consistency and transparency.

“Our concern is that this could end up being a very difficult bottleneck,” Morris said. “If we don’t get these projects that are in the forefront . . . permitted, then it’s very difficult to really get this industry off the ground.”

You are stating “could” as a fact? As a fact in the FT? It is just discussing the process which may be competitive as worrisome to the vendors.

Permitting and environmental reviews are real issues now. The concern is that it could get worse and become ‘very difficult’ – not something the wind guys can go through quite readily. Notice the wind guys are using the present tense:
“permitting is too slow, leases are too expensive, equipment is in short supply and inflation is soaring”.

DB2

3 Likes

An example from last year:

DB2

2 Likes
2 Likes

This is a problem almost everywhere (I don’t mean locations, I mean all sorts of projects). A few years ago, I was involved in a traffic safety research project where a pole had to be installed with some equipment attached to it. The designs were submitted, and the permits pulled. It took well over a year to get all the permits and complete the installation. And that delayed the overall project by over 9 months. The thing that was ridiculous is that the permits to run the power, dig the hole, install the enclosure at the street level were approved in a timely manner and that part of the construction was completed in less than 6 months. Then it all sat there for more than 7 months while waiting for someone in the city to approve the pole and the equipment installation. Then it was all installed, and connected to power, and tested. And the city wouldn’t allow it to be turned on, and wouldn’t allow the research to begin, until they issued ANOTHER permit to turn everything on. And that last permit took another 6 weeks to get!

1 Like

The last business I had in Caracas required a permit from the fire department so that some other office could give us a tax number. I duly visited the fire department asking for the inspection. I’m still waiting…

In Venezuelan style we just got on with our business. Since we didn’t have a tax number we couldn’t report our activity to that office so we just skipped it. No big deal!

The Captain

1 Like

Not a problem. When people on Nantucket whine about their need for more power, tell them they can’t have it because the wind farms needed to provide their power were rejected by them. Good luck !!

1 Like

Well you do have to admit that installing a pole is a dangerous thing. I mean it isn’t something we do every day.
(180M poles in the US)

This might be all a favor to them. As inflation recedes businesses will take off. Costs may well come down. Note that is future tense.

Renewable Power’s Big Mistake Was a Promise to Always Get Cheaper
www.bloomberg.com/news/articles/2022-11-07/wind-giant-rues-promise-that-renewable-power-could-be-free?leadSource=uverify%20wall

  • Vestas CEO says industry went too far with cheap-energy pledge
  • Producers are losing money even as clean-power demand grows

DB2

Vestas’ problem is the larger competitors can do more R&D to leapfrog them tech wise.

The list of significant players with deeper pockets getting ready to eat Vestas’ lunch is impressive.

That assumes the deeper pocket players (Siemens? GE?) want to spend more at this time with uncertain wind economics. In addition, orders this year are only half of what they were in 2019. And there are permitting issues mentioned previously [Permitting in Europe is the “overriding biggest challenge,” Andersen said.]

DB2