An Assessment of the Potential Costs and Benefits of Offshore Wind Turbines

New Jersey Board of Public Utilities (BPU)
Global Insight

The report assesses the benefits and costs of a 288 MW offshore wind farm off the waters of New Jersey. Such an offshore wind pilot project could generate 717 GWh per year, or 1% of generational output, and reduce greenhouse gas (GHG) emissions by 430,000 metric tons. Construction costs would range from $1-1.3 billion. Tourism spending forgone or gained will affect directly only that county closest to the wind farm; the difference in forgone revenue drops significantly if project located six miles vs. three miles offshore, as well twenty miles vs. twelve miles. The total net present value (NPV) to the fishing industry of a potential wind farm's construction and operations under these scenarios would range from $154,000 to $6.6 million. There would be minimal impact on New Jersey's and the Shore's brand image but, the proposed wind farm could improve New Jersey's brand image with a holistic, credible, accountable green action plan.

Publication Date: 
Monday, September 1, 2008
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