financing

Empire Wind moves forward

February 13, 2025 By EarthWise Leave a Comment

Empire Wind 1, the first offshore wind project that will connect to the New York City grid, has received the financing needed to move forward. Equinor, the Norwegian state-owned multinational energy company developing the project, closed on a more than $3 billion financing package.

The wind farm will span 80,000 acres in an area 15-30 miles southeast of Long Island. When completed, it will have a capacity of 810 megawatts. Equinor has executed a Purchase and Sale Agreement with the New York State Energy Research and Development Authority to purchase power from Empire Wind 1 for 25 years at a strike price of $155/MWh. The operations and maintenance hub for Empire Wind 1 will be at the South Brooklyn Marine Terminal. Commercial operation is expected by 2027.

The previously-planned Empire Wind 2 project was terminated a year ago because of inflation, interest rates, and supply chain disruptions. More broadly, the U.S. offshore wind industry has been struggling for the past year.

With the return of President Donald Trump to the White House, there is much greater uncertainty facing the industry. As a result of the election, Attentive Energy, a planned 3-gigawatt wind project off the coasts of New York and New Jersey has been put on pause. Trump’s public disdain for offshore wind energy is likely to create a major slowdown in the growth of the offshore wind pipeline. On the other hand, the new administration is less likely to have much influence on projects already in progress including 4 gigawatts under active construction and more than 50 gigawatts in other stages of development.

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Empire Wind 1 secures $3B+ financing package, enters ‘full execution mode’

Photo, posted May 2, 2022, courtesy of California Energy Commission via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Trends in rooftop solar

October 8, 2024 By EarthWise Leave a Comment

Rooftop solar power in the United States has increased by a factor of ten over the past decade and the majority of that growth has been in the past six or seven years. At this point, about 7% of American homes have solar panels on their roofs – about 5 million in total.

Rooftop solar really began experiencing widespread use about 20 years ago. Over that time period, the amount of electricity that panels are able to produce has grown substantially and the cost of solar power systems has dropped dramatically.

Twenty years ago, the median sized residential solar system generated 2.4 kilowatts of power. In 2023, the median size was 7.4 kilowatts. Roofs haven’t gotten bigger; solar panels have gotten better.

More importantly, 20 years ago, the average cost of installing solar power was $12 a watt. In 2023, the cost was $4.20 a watt.

Americans in fact pay considerably more for solar power than citizens in many other countries. The reason is not the price of the equipment; it is so-called soft costs. These include labor, financing, and permitting. Driving down soft costs is complicated and difficult. For one thing, it is important for solar industry jobs to have high pay and good benefits.

The cost of solar also varies significantly by state. California is the leading state for solar power and its median solar cost is the $4.20 a watt, the same as the national average. Nevada has the lowest cost at $3.40 a watt and Utah has the highest at $5.20 a watt.

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Bigger and Less Expensive: A Snapshot of U.S. Rooftop Solar Power and How It’s Changed

Photo, posted September 18, 2011, courtesy of Team Massachusetts 4D Home via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Distributed Wind Energy | Earth Wise

March 17, 2023 By EarthWise 1 Comment

When we think about wind power, we are usually talking about increasingly giant windfarms – either on land or offshore – that produce power on a utility scale. But there is also distributed wind energy, which refers to wind technologies in locations that directly support individuals, communities, and businesses.

Distributed wind can be so-called behind-the-meter applications that directly offset retail electricity usage much as rooftop solar installations do. It can also be front-of-the-meter applications where the wind turbines are connected to the electricity distribution system and supplies energy on a community scale. Distributed wind installations can range from a several-hundred-watt little turbine that powers telecommunications equipment to a 10-megawatt community-scale energy facility. As of 2020, there were nearly 90,000 distributed wind turbines in the U.S. with a total capacity of about 1 GW.

A study by the National Renewable Energy Laboratory has estimated the potential for distributed wind energy in the U.S. According to the new analysis, the country has the ability to profitably provide nearly 1,400 GW of distributed wind energy capacity.

Entire regions of the country have abundant potential. The regions with the best economic prospects have a combination of high-quality wind, relatively high electricity rates, and good siting availability. Overall, the Midwest and Heartland regions had the highest potential especially within agricultural land.

Realizing this outcome for distributed wind will require improved financing and performance to lower costs, relaxation of siting requirement to open up more land for wind development, and continued investment tax credits and the use of net metering.

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U.S. has potential for 1,400 GW distributed wind energy, NREL finds

Photo, posted January 3, 2009, courtesy of skyseeker via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Upgrading The U.S. Power Grid | Earth Wise

February 15, 2022 By EarthWise Leave a Comment

The Department of Energy has launched the Building a Better Grid Initiative to accelerate the development of new power transmission lines. The initiative aims to upgrade the nation’s grid, connect more Americans to clean electricity, and reliably move clean electricity to where it is needed most. The initiative is a part of the Bipartisan Infrastructure bill that was signed into law in November.

Under the initiative, DOE will identify critical national transmission needs and support the buildout of long-distance, high-voltage transmission facilities as well as support transmission planning, financing mechanisms, transmission-related research and development, and efforts on energy justice.

DOE will deploy more than $20 billion in federal financing that includes more than $10 billion in grants to states, Tribes, and utilities to enhance grid resilience and prevent power outages. It will also coordinate with other agencies to streamline permitting for transmission infrastructure.

Seventy percent of the US grid’s transmission lines and power transformers are over 25 years old. There is also insufficient transmission capacity, especially for transmission that facilitates transfer of power across regions. The current grid is vulnerable to harsh weather and needs improved reliability.

Providing more transmission capacity in areas where it doesn’t exist today is essential for the integration of more large-scale renewable generation sources into the grid. The national goal of 100% clean electricity by 2035 is not just about decarbonizing the generation sources. A substantial upgrade to the transmission infrastructure is necessary and the Building a Better Grid Initiative is a major step in the right direction.

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The big upgrade to the US power grid is kicking off

Photo, posted February 2, 2020, courtesy of Tony Webster via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Clean Energy In Rochester | Earth Wise

October 26, 2021 By EarthWise Leave a Comment

New York’s largest community choice clean energy program has been activated in the City of Rochester. The program, offered by Rochester Community Power, offers 57,000 residences and small businesses access to clean energy from hydropower and wind sources. It requires customers to opt out rather than enroll in order to provide clean energy to the greatest number of people.

Rochester Community Power is the city’s local community choice aggregation (CCA) program that leverages the collective buying power of participating residents to purchase renewable electricity and negotiate better terms for energy supply contracts.

The program will supply customers with more than 300 million kWh of renewable energy each year, which will avoid the emission of about 250,000 tons of carbon dioxide. Rochester plans to add a community solar program next year which will provide additional clean energy opportunities, including offering guaranteed savings to thousands of participants in its Home Energy Assistance Program.

The project will be managed by Joule Assets, which is a provider of energy reduction market analysis, tools, and financing. Joule Assets, as program administrator for the Rochester program, managed the competitive bidding process that secured a fixed rate for electricity for the next two years, shielding participating residences and businesses from volatile market prices.

Community choice aggregation programs are local, not-for-profit public agencies that are an alternative to investor-owned utilities. They give municipalities the ability to make decisions about the procurement, sourcing, and rates for energy for its residents.

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New York activates its largest opt-out 100% renewable energy program

Photo, posted June 25, 2011, courtesy of Paulo Valdivieso via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

Alaska’s Threatened Communities

January 27, 2017 By EarthWise

Because of its Arctic location, Alaska is warming about twice as fast as the rest of the United States. The past year has been the warmest on record. The forces of erosion and increasingly powerful storms have resulted in the imminent risk of destruction for at least 31 Alaskan towns and cities. Many are predicted to become uninhabitable over the next few decades. Residents of these places are likely to join the growing flow of climate refugees around the globe.