In a recent development, internal documents reviewed by Digital have revealed that the Vineyard Wind project, the first utility-scale offshore wind project to deliver electricity to the grid, would not have been financially viable without the intervention of the Biden administration. The Bureau of Ocean Energy Management (BOEM) granted a waiver on development fees, a move that was deemed “critical” for the 800-megawatt project.
According to Michael Chamberlain, the director of watchdog group Protect the Public’s Trust (PPT), the details of the Vineyard Wind project raise concerns about the administration’s claims of promoting clean energy. Chamberlain stated, “If government has to bend the rules to make these projects feasible, it’s just a matter of time before the ‘clean energy transition’ is dead in the water.”
The waiver on development fees, which were designed to safeguard taxpayers, was approved by BOEM in June 2021. The project developer, Vineyard Wind, had initially submitted the request in December 2017, but it was rejected by the Trump administration. However, under the Biden administration, the request was approved, allowing Vineyard Wind to defer payment until 15 years after the project enters operations.
Meredith Lilley, an energy program specialist at BOEM, acknowledged in an internal email that waiving the fee was crucial for Vineyard Wind’s financial viability. This decision was made just one month before BOEM approved the project’s construction and operations plan. The email emphasized the need for the decision to be made promptly to secure financing and achieve financial close.
BOEM justified the waiver by citing risk reduction factors in the project, including insurance policies, proven wind turbine technology, and power purchase agreements with guaranteed electricity sales prices. The agency also highlighted that waiving the fee promoted the production and transmission of energy from a source other than oil and gas.
Critics, however, have raised concerns about the potential impact on fishing communities and the environment. Meghan Lapp, the fisheries liaison for Rhode Island-based fishing company Seafreeze, expressed dissatisfaction with the government’s approach to offshore wind projects. Lapp’s company is spearheading a lawsuit against Vineyard Wind, highlighting the project’s negative impacts.
Despite these concerns, Vineyard Wind developers, lawmakers, and environmental groups have celebrated the project’s milestone of delivering electricity to the grid. The Sierra Club hailed the project as a step towards reducing fossil fuel air pollution, while the Conservation Law Foundation acknowledged the region’s transition towards renewable energy.
Vineyard Wind, a joint venture between Copenhagen Infrastructure Partners and Avangrid, was fast-tracked once President Biden took office. The project received formal approval from the Department of the Interior in May 2021, making it the first utility-scale offshore wind farm to receive federal approval.
The revelations regarding the financial viability of the Vineyard Wind project have sparked debates about the government’s role in promoting clean energy and the potential consequences for taxpayers and the environment. As the project progresses, the concerns raised by critics continue to highlight the importance of balancing clean energy goals with comprehensive assessments of the impacts on various stakeholders and industries.
