Developers looking to build thousands of wind turbines off the Mid-Atlantic and New England coast are coming up against a force even more relentless than the Atlantic winds: the Iron Law of Megaprojects, offering a warning of the trouble ahead for green-energy projects.
The Iron Law, coined by Oxford Professor Bent Flyvbjerg, says that “megaprojects” — which cost billions of dollars, take years to complete, and are socially transformative — reliably come in over budget, over time, over and over.
From Boston’s Big Dig to California’s high-speed rail to New York’s 12 years-overdue and 300% over-budget East Side Access rail project, big boondoggles routinely demonstrate the validity of the rule.
Offshore wind projects are not immune to the Iron Law, regularly experiencing vast cost overruns before a single watt is generated.
The New York state government, looking to replace oil- and gas-fired powerplants with hundreds of wind towers off Long Island, set out in 2019 to create an offshore wind supply chain from scratch, beginning with a massive state-funded turbine fabrication facility about 100 miles north of New York City on the Hudson River.
Ground still hasn’t even been broken, but the budget certainly has: The price of that Port of Albany facility has already doubled from $350 million to $700 million. An additional $100 million may be needed for equipment costs, raising the final price tag to $800 million.
Read the full article on Real Clear Policy.
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