NJ Energy Report – October 2024
Actions and comments affecting the New Jersey energy supply.
Comments
The Offshore Wind Atlantic Shores project approval is new. Most other issues are continuation from previous months.
Summary
- The State Legislators continued the investigation of high electric rates.
- BOEM approved the construction of the Atlantic Shores Wind Project
- Fighting continued over using natural gas as the backup power for a waste treatment plant.
- A small sales tax was imposed on electric vehicles’
- Charging stations for heavy electric trucks are planned for I95.
- A national grid modification bill may affect New Jersey.
Electric Rate Increases
In August the State Republicans called for an investigation of rising electric rates. In October this investigation (1) (2) was held. The conclusions are rather obscure. The hearings concentrated on increased summer heat (3) and inflation with a proposed solution of decreasing demand. (4) What appears to be ignored are why the utilities could not provide the required electricity and are there additional unidentified costs. The August Energy Report discussed renewable energy subsidies.
Wind is currently nonexistent in the state and solar is weather and day time dependent and not necessarily available when required. Current Grid infrastructure upgrades are expensive and complex because the numerous small solar complexes require complex power distribution.
Utility dispatchable power, coal, natural gas, and nuclear is being phased out or their capacity frozen. Coal is gone, nuclear is fully committed, and only natural gas remains and this is to be phased out.
The increase power demand due to higher temperature could only be met by natural gas or other states with excess dispatchable power. (5) The problem this summer was the phase out dispatchable power without a replacement and the hidden costs of the renewable energy subsidies.
References
(1`) https://www.njspotlightnews.org/2024/10/high-heat-means-high-electricity-bills-lawmakers-told/
(2’) https://www.njspotlightnews.org/video/why-are-nj-electric-bills-so-high/
(3`) https://alexepstein.substack.com/p/why-you-shouldnt-be-alarmed-about
(5`) https://alexepstein.substack.com/p/summer-talking-points-electricity
Energy Supply
Offshore Wind Turbines
BOEM Approval of Atlantic Shores Wind Complex 1&2
The Bureau of Ocean Energy Management (BOEM) approved construction of the Atlantic Shores Wind Complex 1&2. (1) This is a 2800 MW, 197 wind turbine complex about 10 miles from Atlantic City. It will be twice the size of the cancelled Orsted Ocean Winds Project. (2)
There is still local opposition to Atlantic Shores (2) but there appears to be few legal aspects left to stop construction from beginning in 2025. The Environmental Impact statement was issued reviewed and approved.
Offshore wind electricity costs are still unknown despite the requirements the BPU was to provide cost estimates. Atlantic Shores is demanding to renegotiate its bid price upward (4). Transmission line costs are completely ignored.
References
(1`) https://www.njspotlightnews.org/2024/10/nj-offshore-wind-project-gets-federal-sign-off/
(2`) https://www.windaction.org/posts/557
(3`) https://www.windaction.org/posts/55923
(4`) https://jerseystrong.org/wp-content/uploads/2024/10/JSCC-BPU-Letter.pdf
Natural Gas
Back Up Natural Gas Plant
This issue (1), should natural gas be used as emergency power back up for a waste treatment plant power loss, has been discussed in the July and September Energy Reports. The hidden issue is the anti-fossil fuel advocates do not want a cost benefit or a pollution benefit analysis done. They want no natural gas use regardless of pollution or energy supply issues.
References
(1`) https://www.njspotlightnews.org/2024/10/dep-urged-to-block-proposed-newark-power-plant/
Transportation
Electric Vehicles (Cars)
Electric Vehicle Subsidy
New Jersey tax payers have subsidized electric vehicle purchasers since 2003 by exempting them from the state sales tax (1) This began to end on October when a 3.3125 sales tax was imposed which will rise to the full rate of 6.625% July 1 2025 (1). The renewable energy industry is heavily subsidized (2).
References
(1`) https://www.njspotlightnews.org/2024/10/nj-says-time-to-pay-sales-tax-on-electric-cars/
(2`) https://energytalkingpoints.com/subsidies/
Charging Electric Trucks
The EPA will spend $250 m to build charging stations in four states for heavy electric trucks. (1) The charging stations will be along I95 and some will be located in New Jersey.
The vital issues are will these chargers be capable of recharging heavy EV trucks in an affordable and quick way to show the trucks are economically and technically feasible. That is not discussed or mentioned.
References
(1’) https://www.njspotlightnews.org/video/ev-truck-charging-stations-coming-to-i-95/
Grid Modification (National Bill)
Since a federal climate, health care and tax law entered into force in 2022, the volume of electricity projects waiting to be connected to U.S. power grids has doubled, Londagin said.
According to a study the Lawrence Berkeley National Laboratory completed this year, solar, wind and battery projects comprised about 95% of the projects waiting in what are called “interconnection queues” — lists of pending electricity projects that are to be hooked up to the broader power grid.
“Helping New Jersey make connections to cheaper electricity … cheaper wind electricity that’s in the Great Plains, building big transmission lines to get that cheap and clean electricity to the coast is going to be huge,” Londagin said. “If you only have a couple transmission lines bringing in power, that leads to higher prices.”
There are several issues here. How is siting the interstate transmission lines and the transmission lines from mainly wind and solar sites done and how is the connection of these lines made? Also, most important is who is paying for the lines and connections. New Jersey legislators are working on a similar bill to make grid modifications that occur entirely in the state.
The regulatory restraints are not identified.
The real purpose is to hide the increased grid costs the intermittent wind and solar electricity causes. Dispatchable power pays for the transmission connection line and the connection to the grid line
Wind and power do not want to pay these costs. Wind and solar require many more connections points to the transmission lines which make gird operation much more complex and increases costs (2)
References
(1`) https://www.njspotlightnews.org/2024/10/congress-considers-overhauling-energy-transmission-permits-would-mean-lower-nj-electricity-prices/
(2`) https://energytalkingpoints.com/subsidies/
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