Consumer Cost Implications of Offshore Wind Stop Work Orders
Halting five offshore wind projects may raise electricity costs, increase gas reliance, and reduce access to stable energy during periods of high demand.
On December 22, DOI issued a stop-work order for five offshore wind projects. These projects that serve regions within the PJM, NYISO, and ISO-New England power markets are already under construction — the average is over 70% completed — and have undergone years of review by National Oceanic and Atmospheric Administration, the Department of the Interior, the Department of War, and other federal offices.
In its analysis, ACP evaluated the impact of removing the five offshore wind projects from the system. The results were then translated into expected retail electricity rates across 15 states and Washington, D.C.
Offshore wind plays a critical role shifting the “marginal unit” — the last and most expensive generator needed to meet demand — away from high-cost peaking plants toward more efficient and predictable generation.
Key findings from the analysis show that without these projects:
- Wholesale electricity prices would rise significantly during evening peaks and winter hours – including intense winter storms like Fern
- Power systems would rely more heavily on non-renewable sources and leave customers more exposed to price volatility
- Grids would lose access to low-cost, winter-peaking clean energy that helps stabilize prices during periods of high demand
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