Consumer Cost Implications of Offshore Wind Stop Work Orders
Halting five offshore wind projects may raise electricity costs, increase gas reliance, and reduce access to stable energy during periods of high demand.
On December 22, DOI issued a stop-work order for five offshore wind projects. These projects that serve regions within the PJM, NYISO, and ISO-New England power markets are already under construction 鈥� the average is over 70% completed 鈥� and have undergone years of review by National Oceanic and Atmospheric Administration, the Department of the Interior, the Department of War, and other federal offices.听听
In its analysis, ACP evaluated the impact of removing the five offshore wind projects from the system. The results were then translated into expected retail electricity rates across听15 states and Washington, D.C.听
Offshore wind plays a critical role shifting the 鈥渕arginal unit鈥� 鈥� the last and most expensive generator needed to meet demand 鈥� away from high-cost peaking plants toward more efficient and predictable听generation.听
Key findings听from the analysis听show that without these projects:听听
- Wholesale electricity prices听would听rise significantly during evening peaks听and听winter hours 鈥撎齣ncluding intense winter storms like Fern听
- Power systems would听rely more heavily on听non-renewable sources and leave customers more exposed to price听volatility听
- Grids would听lose access to low-cost, winter-peaking clean energy that helps stabilize prices during periods of high demand听
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