Thanks very much for your informative report published on Nov. 23, 2022. Information on this subject is typically only released in a favorable fashion by the regulators. I am quite sure …
Thanks very much for your informative report published on Nov. 23, 2022. Information on this subject is typically only released in a favorable fashion by the regulators. I am quite sure that this project has increased in cost very substantially.
1. The three largest manufacturers of wind turbines in the world are Siemens Gamesa, Vestas, and GE. All of them have reported losses of $1 billion or more this year as cost have skyrocketed with inflation. They are also laying off employees to cut cost while anticipating a drop in demand.
2. Wind energy contracts for electricity in the USA increased by 37 percent in the third quarter. You can bet Mayflower Wind with much higher construction cost wants a substantial rate increase.
3. Shell is a 50 percent investor in Mayflower Wind and has like all other companies been faced with substantially higher capital cost for any project and will thus require higher returns from a project. That also means higher rates need to be paid for wind electricity.
4. When all costs are included, wind power is easily double the cost of natural gas electric power generation. One needs to also include the fact that wind turbines only last about 20 to 22 years and must be replaced. The projected cost of future power usually excludes that replacement cost, meaning the rate payers are left holding the bag. Wind turbines must be at least 40 to 45 percent of the project cost so for those of you who are alive 20 years later, brace yourself.
5. I have never seen a total projected cost for this project much less an updated one after this huge inflation surge.
Thanks again for your work and please continue to keep us informed.