May 20

Trump allows Equinor to resume work on wind project off New York

Energy News Beat

0  comments

Share0
Tweet0
Share0
Share0
Tweet0
Share0
ENB Pub Note: Interesting that New York was able to restart the Empire Wind project. I added the energy mix to the top of the Empire wind announcement for clarification. New York has the 8th highest electricity prices in the country, and it will go up significantly when this wind project comes online. Bookmark this article, as the turbines will need to be replaced, or torn down, and who will pay for the land reclamation? It is not in their budgets, and this ecological and financial disaster is waiting to happen. 

New York State Power Mix (2023)

Based on the latest data from the U.S. Energy Information Administration (EIA) and other sources, New York’s electricity generation mix in 2023 is as follows:
  • Natural Gas: ~46% of net electricity generation. Natural gas dominates, fueling 6 of the state’s 10 largest power plants by capacity. About two-thirds of this capacity has dual-fuel capability, allowing switching to petroleum products during supply disruptions.
  • Hydropower: ~22% of net electricity generation. New York is the third-largest hydropower producer in the U.S., after Washington and California, with major facilities like the Niagara Power Project.
  • Nuclear: ~22% of net electricity generation. Three remaining nuclear plants (down from four after Indian Point’s closure) contribute significantly, though their share has declined from 34% in 2019.
  • Other Renewables (solar, wind, biomass): ~10% combined. Solar has grown rapidly, surpassing biomass in 2019, while wind and biomass contribute smaller shares. New York aims for 70% renewable electricity by 2030.
  • Coal and Petroleum: <1%. Coal use is minimal and declining, with petroleum used mainly as a backup in dual-fuel plants.
  • Net Imports: New York imports electricity from neighboring states and Canada (e.g., Canadian hydropower) to meet demand, as in-state generation covers only about one-fifth of total energy needs.
Key Trends:
  • New York’s Clean Energy Standard targets 70% renewable electricity by 2030, driving growth in solar, wind, and hydropower.
  • Per capita electricity consumption is among the lowest in the U.S., due to efficient urban infrastructure and widespread public transit use.
  • The commercial sector consumes ~50% of electricity, residential ~33%, industrial ~11%, and transportation (e.g., rail systems) the rest.
Electricity Prices in New York Compared to Other States (2025)
New York’s electricity prices are among the highest in the U.S., driven by a deregulated market, dense population, aging infrastructure, and reliance on natural gas. Here’s a detailed comparison based on 2025 data:
  • Average Residential Rate in New York:
    • 27.2 cents/kWh (December 2024, New York-Newark-Jersey City area), up from 24.1 cents/kWh in December 2023.
    • Statewide average: ~25 cents/kWh (March 2025), with New York City rates as high as 31.02 cents/kWh.
    • This is 29% higher than the national average of 19 cents/kWh and 54.5% above the national average of 17.6 cents/kWh in December 2024.
    • New York ranks 43rd (8th highest) among states for residential electricity rates, with an average monthly bill of $139.40 for 602 kWh usage.
  • Commercial Rates:
    • Average: 19.02 cents/kWh, with monthly bills averaging $53,065 due to high consumption. Businesses benefit from volume discounts.
    • New York City commercial rates: 34.03 cents/kWh, among the highest in the state.
  • Comparison to Other States (March 2025, Residential Rates):
    • Highest: Connecticut (29.58 cents/kWh), Hawaii, Massachusetts, Rhode Island, New York (top 5).
    • Lowest: Pennsylvania (17.95 cents/kWh), North Dakota, Idaho, Utah, Nebraska (Midwest and Western states with local fossil fuel or renewable resources).
    • National Average: ~19 cents/kWh, with some states like Utah seeing rates as low as 11.48 cents/kWh.
    • Notable Trends:
      • Utah: Largest rate increase (13.3% from Feb 2024–2025), yet still among the cheapest due to coal and renewables.
      • Nevada: Largest rate decrease (14%), benefiting from market adjustments.
      • Northeast: Highest regional rates due to natural gas reliance, dense populations, and infrastructure costs.
      • Midwest/South: Lowest rates due to abundant coal, natural gas, and renewables (e.g., Washington’s hydropower).
  • Factors Driving New York’s High Rates:
    • Deregulated Market: Since 1998, New Yorkers can choose from over 200 Energy Service Companies (ESCOs), leading to competitive but volatile rates. Fixed-rate plans (6 months–5 years) offer stability, while variable-rate plans fluctuate with market prices.
    • Infrastructure Costs: Aging grid and high transmission costs in dense urban areas like NYC increase rates.
    • Natural Gas Dependence: Global fuel price fluctuations impact costs, as natural gas is the primary source.
    • Policy Mandates: System Benefits Charge/Renewable Portfolio Surcharge funds renewable programs, adding to bills.
    • Seasonal Demand: Rates peak in summer (cooling) and winter (heating), with competitive rates in spring/fall (late September–Halloween, late March–early May).
  • Savings Opportunities:
    • Switching providers in a deregulated market can save up to 40% on bills. Compare rates via platforms like EnergyBot or ChooseEnergy.
    • Green energy plans (100% renewable) are widely available, often at competitive rates, supporting the state’s 2030 renewable goal.
    • Time-of-use plans offer lower rates during off-peak hours (e.g., 9 p.m.–6 a.m.).
Summary
New York’s power mix is diverse, with natural gas (46%), hydropower (22%), nuclear (22%), and renewables (10%) dominating, supplemented by imports. The state’s electricity prices (25–31.02 cents/kWh residential, 19.02–34.03 cents/kWh commercial) are significantly higher than the national average (19 cents/kWh), ranking among the top 10 most expensive states. Compared to low-cost states like Pennsylvania or Utah, New York’s rates reflect its urban density, natural gas reliance, and renewable investments. Consumers can mitigate costs by comparing ESCO plans, opting for fixed-rate or green energy options, and timing switches during low-demand periods.

The Trump administration has allowed the restart of the $5bn Empire Wind project off the coast of Long Island, allowing construction activities to resume.

The project was halted with a stop work order issued in April 2025 by Interior secretary Doug Burgum, initially stating that more time was needed to assess the project’s previous approvals.

He later said on social media that scientists at the National Oceanic and Atmospheric Administration “have revealed that the Biden administration’s rushed approval of the Empire Wind project was built on bad and flawed science.”

This move got mixed reviews, even from Republican Party members like Leslie Beyer, who was Donald Trump’s nominee for the assistant secretary role in the Department of the Interior. She said during her confirmation hearing that the order to stop work on the Empire Wind project sent “a dangerous message” as companies needed certainty in the permitting system so they could make financial investment decisions.

By the time the stop order was issued, Equinor had already invested over $2.5bn in the project. The stoppage was costing the company up to $50m per week, including 11 vessels on standby. Equinor revealed last week that it was considering terminating the project if no progress was made towards a resolution “within days”.

However, Equinor said on Monday that following dialogue with regulators and federal, state, and city officials, the stop work order was lifted by the Bureau of Ocean Energy Management, and construction activities will resume.

Equinor will perform an updated assessment of the 816MW project economics in the second quarter. The company aims to execute planned activities in the offshore installation window in 2025 and reach its planned commercial operation date in 2027. The project is currently more than 30% complete. When fully operational, it is expected to deliver enough electricity to power 500,000 New York homes.

The main facilitator for the lifting of the stop order was New York governor Kathy Hochul, who vowed that she would not give up on the project. According to her statement, she spent weeks pressing president Trump to lift the government’s hold on the wind farm.

“After countless conversations with Equinor and White House officials, bringing labour and business to the table to emphasise the importance of this project, I’m pleased that President Trump and Secretary Burgum have agreed to lift the stop work order and allow this project to move forward,” Hochul said.

She also noted that the restart of the project saved 1,500 “good-paying union jobs that were on the line”.

The United States is a core country in Equinor’s portfolio. Since the early 2000s, Equinor has invested approximately $60bn in energy projects in the country.

“I would like to thank president Trump for finding a solution that saves thousands of American jobs and provides for continued investments in energy infrastructure in the US. I am grateful to Governor Hochul for her constructive collaboration with the Trump administration, without which we would not have been able to advance this project,” said Anders Opedal, president and CEO of Equinor.

Energy News Beat 

 Previous
Next

Tags

You may also like