www.savelbi.org
PRESS RELEASE
For Immediate Release September 25, 2023
FOREIGN OFFSHORE WIND DEVELOPERS SEEK MORE US SUBSIDIES
TIME FOR A MORATORIUM AND REBOOT
Under the guise of saving the planet from climate change and providing long term economic growth the
federal government and the State have been extremely generous to foreign wind energy companies
with your money and environment. This generosity includes: federal tax credits, increases in electric
bills, taxpayer funding of onshore support facilities, additional direct subsidies, a weakening of the
environmental impact statement process, and the potential for your children to pick up the tab for
removing the turbines, substations and cabling in the future.
Rising Costs and New Subsidy Demands. Recent events have confirmed that even with billions in
Federal and state subsidies, the current NJ wind projects are not economically viable without additional
electric bill or tax handouts, nor are they effective in addressing climate change.
 Offshore wind remains the most expensive form of renewable energy generation for the US.
Already high costs have skyrocketed due to supply chain issues, higher interest rates and
inflation. Orsted, the Danish developer of the Ocean Wind projects in NJ and in other states has
taken a multi-billion dollar write down, reflecting reduced earnings expected in the U.S. It has
also pushed back the operating date for Ocean Wind 1, its first NJ project, from 2024 to 2026.
 Similar financial headwinds are causing other developers to re-think their cost and schedule
commitments, and they are doubling down with requests for more handouts. By threatening to
walk away, the foreign wind companies convinced the governors of six Atlantic coast states to
recently plead for more Federal tax credits, a new federal revenue sharing program, and a
further acceleration of the review and approval process for offshore wind projects
 In New York, the British/Norwegian developers have requested increases of more than 50
percent on already high electric power prices for offshore wind projects there. The Atlantic
Shores project off Long Beach Island, New Jersey, a joint venture of a Royal Dutch Shell
subsidiary and Electricite de France Renewables, is waiting in the wings to request additional
subsidies from NJ electric users and taxpayers.
 Bob Stern, President of Save LBI, noted that “Orsted is in Washington trying to wring additional
tax credits for its projects. Not satisfied with a federal tax credit that returns 30 percent or even
40 percent of its capital cost, Orsted is seeking changes in tax rules to give it 50 percent of that
money from US taxpayers. That would require waiving IRS rules to use US steel and other US
manufactured components in its projects. Other foreign developers are also looking to waive or

modify that requirement which was established to make sure American manufacturing jobs are
created by offshore wind projects”.
 Edward O’Donnell of Whitestrand Consulting has studied the economics of the NJ wind projects
and notes that “the three projects approved thus far have access to more than $25 billion of
subsidies in tax credits and above market power prices. That’s for 3758 megawatts of power. If
the full 11,000 megawatts of the NJ Master Energy Plan are built, at ever increasing costs to rate
and tax payers, I estimate the total subsidies will top $100 billion.”
 “If demands for new subsidies are approved, electric power rates statewide could rise at least
30 percent for residential, 40 percent for commercial and 50 percent for industrial customers for
the full planned wind program. A typical household would pay more than $9,000 extra for wind
generated power over the more than 20 years these higher rates are in effect”, O’Donnell
stated.
 It’s not just the direct costs that will impact the state’s residents and businesses. “Studies have
shown that even much lower across the board increases in electricrates would result in
thousands of job losses and hundreds of millions per year in lost wages in the state” O’Donnell
said. “Increases on the order expected for 11,000 megawatts of offshore wind would
undoubtedly result in much greater economic pain, not just to the shore communities, but to
the state-wide economy and hit those residents and businesses least able to afford it the
hardest.”
Alleged Benefits. Proponents of offshore wind acknowledge that there is a cost involved, but the
Atlantic Shores project CEO considers it worth the price because of its “importance to climate change”
and “economic and work force development benefits”.
 But Bob Stern points out that the federal environmental impacts statements (EISs) themselves,
e.g. the Vineyard Wind project EIS, say that the offshore wind projects will have “no collective
impact on global warming”.
 Bob adds that: “Proponents of offshore wind fail to present the true global scope and the time
dependent nature of the global warming challenge. Despite scientist warnings over 50 years ago
to world leaders to reduce carbon emissions, they continue to increase. In 2022 alone, China
and India built 30,000 megawatts of new coal plants. Under the current predictions, some sea
level rise is coming and the offshore wind projects would not reduce but only delay it by a
matter of days. China is wisely using the revenues it makes from selling wind turbine blades to
fund a massive shore protection program. Our money would be better spent on cost-effective
ways to reduce carbon emissions that do not degrade our shores and kill marine mammals, and
on preparing for future climate change impacts. ”
 Also, according to John Deitchman, the Save LBI Issues Coordinator, “the touted job and
economic benefits are overstated, primarily associated with the construction period. And it is
unclear how many of the jobs will go to NJ versus foreign workers. The job and economic gains
claimed for the Atlantic Shores projects, for example, will be offset by significant job and
economic losses in shore tourism, often affecting lower income workers”.

Time for a Reboot. The next few months will be a critical period for NJ offshore wind. There is seemingly
no end to the subsidies being demanded. Prior State decisions on the existing NJ projects should be
revisited as to whether they should go forward and at what cost, and Save LBI has asked for a rehearing
of the Atlantic Shores 1 project in that regard. Decisions on the projects proposed for the next 4000
megawatts should be paused, and no additional electric rate or tax subsidies should be given until a full
cost benefit analysis is done on the existing and proposed projects (as recently requested by the NJ
Legislature leadership) and an analysis is done of the financial returns being realized by the foreign
developers (as requested by the NJ Office of the Rate Counsel).
These rising costs should prompt some serious reflection by our legislators. There are new wind
technologies on the horizon. There are ways to pursue renewable energy that do not ruin the Jersey
shore and jeopardize marine mammals. Save LBI will keep the public informed on these matters of
extreme importance to your pocketbook and our environment. You can visit our webpage at www.save
LBI.org or our Facebook page at SaveLBI Community Group for the latest updates.