Industry officials say wind energy involves 'trade-off' of higher rates, new businesses
The Jersey-Atlantic Wind Farm in Atlantic City, in this 2008 file photo.TRENTON — New Jersey’s effort to power much of the state with off-shore windmills will mean higher electric bills, state officials said today during a legislative review of the state’s proposed Offshore Wind Economic Development Act.
Business and industry consultants put the additional cost to ratepayers at between $7 billion and $14 billion over 20 years once 1,100 megawatts of wind generation are being whipped up by the ocean turbines. Environmental groups put the pricetag at $5 billion, while legislators said the cost "is not presently quantifiable."
Whatever the price, Department of Environmental Protection Commissioner Bob Martin and Sen. Paul Sarlo (R-Bergen) said rates will definitely rise.
"Everything we have learned up to this time is that the cost of this energy is expensive. Ratepayers may bear the brunt of it," Sarlo said.
"Is renewable energy expensive? Yes, it is," Martin said during the Senate Budget and Appropriations Committee hearing. "We will pay higher rates. ... But the whole idea is to offset that by creating jobs and industry."
Martin later said moving to wind energy involves a "trade-off" of higher rates for creating new businesses and a cleaner environment.
"This is going to benefit the state in the long run because, hopefully ... we are going to create thousands of jobs in a whole new industry that also will benefit our ports and other related business," he said.
The legislation, which the committee passed earlier this week, requires that a percentage of electricity sold in the state be from offshore wind plants. It also provides financial assistance and offers up to $100 million in tax breaks for wind energy projects.
"This is an unproven market here in New Jersey," Sarlo said. "We’re going to give (builders of the turbines) $100 million and raise rates. ... What if they build these farms and they don’t work?"
"It is a proven technology in Europe and other areas of the world," said Sen. Jeff VanDrew (D-Cape May).
Jonathan Lesser, an economics consultant for the New Jersey Business and Industry Association, said higher energy costs due to wind power will drive business out of New Jersey instead of creating jobs. Jeff Tittel of the New Jersey chapter of the Sierra Club countered that the higher price of wind will equalize with that of fossil-fuel plants and become cheaper in 20 years.
Related coverage:
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• East Coast governors, including N.J. Gov. Christie, form group promoting offshore wind energy
• Preparation for groundbreaking offshore wind farm project begins in Atlantic City
• N.J. group launches environmental monitoring buoy for Atlantic City wind farm project