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Dominion threatens to abandon 2.6GW offshore windfarm over performance guarantee
- epistasis 4y agoI think this may be first time I've ever heard a dispute between a utility and a regulator where the utility seemed to be in the right... Maybe I'm missing something?
- bombcar 4y agoThe disputes where the utility is right often get no media attention, because it’s a boring story. The addition of wind is what makes this one notable.
- throwaway499212 4y agoSetting a performance obligation for a wind farm is like prohibiting wildfires, a legal "solution" for a technical/physical problem. I feel like missing the problem here. Maybe law makers want to obstruct a company or out of ideologically aka. political reasons push back against renewables. Or this wind park maybe a trick from Dominion, to cash in subsidy and practically abbadon the plant after. Like other mega projects with public partnerships in the past became. Unfortunately, the article does not illuminate the law makers reasoning.
- Bloating 4y agohttps://www.baconsrebellion.com/wp/secret-wind-case-documents-are-key-to-appeal/ https://www.baconsrebellion.com/wp/secret-wind-case-document... The lawyers for the various environmental groups, otherwise highly supportive of offshore wind, have read all those secret documents. Having read them, they endorsed a significant performance standard with financial penalties
- Ekaros 4y agoWith this sized variable production unit, I do get the idea with demanding some type of delivery guarantees. Or it could massively disturb the market. I think it is pretty reasonable to start expecting renewables to cover the variability. Either building enough storage or alternative production.
- Zigurd 4y agoRe: "Setting a performance obligation for a wind farm is like prohibiting wildfires..." This ignores that risks can be insured. If your risk isn't insurable, your pricing, costs, etc. are probably out of whack. In this case, it seems more like Dominion was expecting to cash in on subsidies in a classic "socialize risk, privatize profit" move. When the conditions around that changed, they got pouty.
- rbut 4y ago2.6GW for 9.8billion USD. Regardless of the environment, and out of curiosity, what's the comparative price for coal, gas or nuclear stations say over a 10 year period (including build price).
- bildung 4y agoThe term of trade is "Levelized cost of electricity", https://en.wikipedia.org/wiki/Levelized_cost_of_electricity https://en.wikipedia.org/wiki/Levelized_cost_of_electricity Coal is about 2x, gas about 1,3x and nuclear is about 3.6x the LCOE of wind, in 2020, without differentiating between onshore and offshore wind.
- KptMarchewa 4y agoThat metric disregards _when_ the electricity is actually produced - which is actual blocker. If the raw amount of generated electricity was the real problem, then just build solar. The problems are when wind is still and sun is shining for average an hour a day, like in Poland in December.
- Tagbert 4y agoThat’s why you want a network of interconnected grids to smooth out the distribution.
- bildung 4y agoJust as in most other parts of central Europe winds seems to be perfectly anticyclical to solar, e.g. higher when solar is lower: https://weatherspark.com/y/87583/Average-Weather-in-Warsaw-Poland-Year-Round https://weatherspark.com/y/87583/Average-Weather-in-Warsaw-P...
- KptMarchewa 4y agoIt's far from covering the needs in December.
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- thghtihadanacct 4y agoI can understand the rider that allows the utility to recoup the expenditures it took to create the farm, however, a good portion of said farm should belong to customers after they've paid it off. Otherwise, its just another subsidy.
- Bloating 4y agoAnd now, for the rest of the story: https://www.baconsrebellion.com/wp/secret-wind-case-documents-are-key-to-appeal/ https://www.baconsrebellion.com/wp/secret-wind-case-document... It blows my mind how many aggressives and their useful idiots talk crap about greedy corporations, but will defend this textbook case of cronyism... an $8 billion boondoggle with a rate-of-return guaranteed to protect this privileged company's stock price and increase executive salaries. Dominion lobbied hard to get the regulatory framework they now cite as being violated. Its classic wolf guarding the hen house. from the above article: The SCC judges and their staffs have read all those secret documents. Attorney General Jason Miyares’ team in the Office of Consumer Counsel have read all those secret documents. The lawyers for the various environmental groups, otherwise highly supportive of offshore wind, have read all those secret documents. Having read them, they endorsed a significant performance standard with financial penalties
- deleted 4y ago[deleted]
- hammock 4y agoI hear a lot these days from Virginians about the bad acting Dominion does. That Richmond’s newest, most luxurious building with the best views (nicer than any bank or the many industry headquarters) is Dominion, when they are supposed to be providing a regulated taxpayer service, is telling. Photo: https://images.app.goo.gl/cMEsPdtwr5wx8aiJ6 https://images.app.goo.gl/cMEsPdtwr5wx8aiJ6
- jmisavage 4y agoThe list of shitty things they do is too long for here, but their new HQ was suppose to be 2 buildings. They decided against the other build during covid and work from home. Now there is just an empty lot downtown which no one can build on until the rights revert back to the city. Another gem of a company called CoStar is look to build a huge building downtown too.
- Bloating 4y agoFor utilities, you, the rate-payer, are not the customer. The customers are the politicians and bureaucrats that "regulate" them. Everything these companies do is about pulling the wool over the ratepayers eyes, so the masses don't complain to the politicians. Did you see the latest ad about how they're working hard to deliver service, and the article about the latest donation they made to some non-profit. The media tells my its all good, so it must be
- faangiq 4y agoYou get the government you deserve. If the people are dumb enough to be fleeced like this, they should be.
- amanaplanacanal 4y ago“If people are dumb enough to be scammed, they should be scammed.” I’m sure every scammer would agree with this sentiment.
- everybodyknows 4y ago> donation they made to some non-profit Which is another way if saying that they took it upon themselves to redirect a chunk of their customer's own charity budget to causes that the company prefers. And to compound the damage, are doing so out of the customer's remaining income as already reduced by taxes. Amazing that the public keeps falling for this, over and over.
- m-p-3 4y agoPolititians are more like the stakeholders, and companies generally listen to those more than the customers they serve.
- mutant 4y agoWe are all going to die over money.
- millzlane 4y agoHow would off shore wind even increase in cost for the consumer. Can someone who knows more than me explain?
- tarvan 4y ago
- tareqak 4y agoIf they abandon the wind farm, then can the government or some other entity pick it up for free?
- tomohawk 4y agoLet's add a giant dependency on a wind farm that's sited in an area prone to hurricanes. What could go wrong?