OP-ED: Setting the Record Straight on Revolution Wind

A robust debate about how our state generates electricity is critical as our state contemplates its energy future. A recent article in The Republican American on the Revolution Wind project Republican-American Editorial Board’s recent focus, makes several assertions that are misleading or unsupported by the facts and risks leaving readers with an inaccurate picture of the nearly complete project which is staged out of New London.

Of course, opinions on any project can differ, but let’s be clear; the energy challenges our state and region currently face are very serious. Our region and New England’s electricity needs are growing while at the same time, more than 7,000 megawatts of generating capacity have retired since 2013 or will retire in the coming years, according to ISO New England, our independent grid operator. Additionally, New England’s gas pipelines are constrained, particularly during the winter, and expanding them will take time. Also, for all the potential advantages of new nuclear generation, additional nuclear power remains a longer-term possibility, not a near-term fix.

A strained energy supply poses particular challenges for the business community. Failure to grow our supply runs a serious risk that our region could become unattractive to new businesses and investment.

Where the Chamber most strongly disagrees with the Editorial Board’s assessment is on its claim that ratepayers “won’t experience much benefit, if any, in terms of pricing or reliability” from Revolution Wind, which is due for completion later this year. Let’s be clear; Revolution Wind is expected to lower the region’s energy costs while strengthening its energy supply and grid reliability. ISO New England itself said last year that any delay in completing the project would “increase risks to reliability.”

An analysis by Connecticut’s Department of Energy and Environmental Protection last year estimated that Revolution Wind could lower regional wholesale energy and capacity-market costs by roughly $500 million annually by 2028. DEEP estimated that Connecticut’s ratepayers would see an additional $150 million to $200 million in savings on public benefits charges over the life of the project.

All generation technologies have advantages and downsides. One obvious advantage of Revolution Wind is that its fuel — the wind — is free and not subject to the price volatility associated with global fuel markets. As a zero-marginal-cost generator, Revolution Wind will put downward pressure on regional market prices.

The Editorial Board also misstates the overall energy production expected from Revolution Wind. Over the course of the year, even after accounting for periods of lower wind speeds, Revolution Wind is projected to generate enough electricity to meet the total annual demand of over 350,000 New England homes.

Revolution Wind is more than 95% complete today, according to its developer, Ørsted. The project will be a valuable new generation resource for the region, particularly during winter, when offshore wind’s output is especially strong.

Elsewhere, the Editorial Board says it hopes Revolution Wind “will be honest” about its cost of delivered energy. The project’s contract provides a clear answer on price. Revolution Wind will sell its electricity to Connecticut for less than 10 cents per kilowatt-hour. That price is locked in for 20 years. That’s a competitive, predictable price for ratepayers today, and its value could grow over time if regional energy prices increase.

In addition to these clear energy and affordability benefits to ratepayers, Ørsted’s Northeast offshore wind projects -- Revolution Wind, South Fork Wind, and Sunrise Wind -- have spurred significant economic activity in Connecticut. The developers contributed $100 million to the redevelopment of State Pier, helping transform it into one of the country’s premier offshore wind hubs, where work continues today. More than 1,000 local union workers have logged more than 2 million hours building Revolution Wind alone, and Sunrise Wind is coming behind it. Beyond the construction phase, Revolution Wind has a $5.25 million host community agreement with the City of New London.

There is no single answer to New England’s energy challenges. The region needs a diverse portfolio that includes existing nuclear generation, natural gas, hydropower, solar, storage, energy efficiency, and offshore wind. Revolution Wind is a practical addition to that portfolio, and its near-completion should be welcome news for Connecticut’s ratepayers.

On one point we strongly agree with The Republican-American Editorial Board: It will be valuable to see Revolution Wind’s actual operating data once the project reaches full commercial operation. Let’s judge Revolution Wind based on its real-world performance, not speculation.