A government regulator recognizing offshore wind’s destructive environmental effects is as rare as a North Atlantic right whale. But a recent, 600-plus page report from the Bureau of Ocean Energy Management (BOEM) admits that the offshore wind development planned for the New York Bight—the triangular area bordered by the New Jersey and Long Island coastlines—may irreversibly harm whales, commercial and recreational fisheries, and seabirds. 

The BOEM report is the agency’s first to evaluate the cumulative impacts of offshore wind development. Its authors cite a wide range of potential effects, from negligible (or even beneficial) to major. Acknowledging potentially “major” harms is a radical departure from the agency’s previously accepted Environmental Impact Statements for offshore wind projects, which have always focused on the impacts of individual projects, rather than the cumulative impacts of multiple projects.

The report, which BOEM bills as a “programmatic environmental impact statement,” admits that the proposed offshore wind projects on the New York Bight may have several negative impacts on the local environment and economy. The authors note, for example, that the effect on the North Atlantic right whale could be “major,” defined as having “severe population-level effects” that would “compromise the viability of the species”—in other words, potential extinction. The report also concedes that the projects could have major effects (“substantial disruptions”) on commercial and recreational fishing, which contribute billions of dollars to the New Jersey and New York economies.

While the report discusses the consequences of these wind turbines on ocean views and even on local housing prices, it makes no mention of these projects’ adverse effects on electric ratepayers and economic growth. These effects are substantial, as New Jersey’s experience reveals. The state’s Board of Public Utilities estimated that its two approved offshore wind projects in 2024, with a total capacity of 2,400 MW, would raise the monthly electric bills of a typical residential customer by about $7, a commercial customer by about $59, and an industrial customer by over $500. Those estimated costs, which don’t include what those customers will pay for new transmission lines and the backup generation needed to offset wind’s inherent intermittency, cumulatively amount to more than a $750 million annual increase in electric bills for the state’s 8.5 million electric ratepayers. , based on the numbers of these customers. If the Garden State succeeds in its goal of developing 11,000 megawatts of offshore wind electricity, despite mounting costs and the cancellations of two major in-state projects, ratepayers alone will end up paying an additional $3 billion to $5 billion more each year for their electricity.

While New York’s regulators haven’t estimated ratepayer impacts for its 9,000 MW offshore wind goal, the state’s contract prices are even higher than those of New Jersey. Thus, the two states’ ratepayers could cumulatively find themselves paying $10 billion more for electricity each year. Forcing individuals and businesses to pay billions of dollars more for electricity each year would devastate New York and New Jersey’s economies, just as high-cost electricity is causing deindustrialization in Germany and Great Britain.

For a government that required SpaceX to estimate the likelihood that one of its rocket might strike a shark upon falling into the ocean, one would think that species extinction, loss of commercial and recreational fisheries, soaring electricity costs, and economic stagnation would scuttle the project planned for the New York Bight. Not so.

Offshore wind will eventually die a well-deserved death. For now, however, this costly folly remains undaunted.

Photo by Newsday LLC/Getty Images

Donate

City Journal is a publication of the Manhattan Institute for Policy Research (MI), a leading free-market think tank. Are you interested in supporting the magazine? As a 501(c)(3) nonprofit, donations in support of MI and City Journal are fully tax-deductible as provided by law (EIN #13-2912529).

Further Reading

Up Next