Global supply chain can’t keep up with growth


The global supply chain apparently cannot keep up with the growth of offshore wind accounting for many of the problems NY State is experiencing.

OilPrice.com: Natural Gas Stands To Win As Offshore Wind Takes A Hit

As I have said, NY State is not doing this in a vacuum and that is brutally apparent from the following caption below from the article.

As noted by the international consultancy giant Wood Mackenzie, global wind turbine order intake in the first half of 2023 surged by 12% year-on-year, reaching an impressive volume of 69.5GW. Most new clients and projects are originating outside of China, demonstrating a year-on-year order demand increase exceeding 47%, totaling more than 25GW. While China remains the largest market with 44GW, North America and Europe are witnessing significant demand and order projections. With global wind turbine orders reaching $25.3 billion in the second quarter of 2023 and $40.5 billion in the first half of the year, the market appears to be approaching a potential breaking point. The increased demand in the United States, driven by the Infrastructure Investment and Jobs Act, has not been matched by sufficient investments in metals, minerals, manufacturing, and installation capabilities. While onshore wind, still the dominant market, boasts relatively straightforward installation, offshore wind, especially floating platforms, is sensitive to supply chain disruptions. A lack of offshore installation vessels and the infrastructure to construct and transport them are causing mounting project delays.

NY State’s installation time frame is falling farther and farther behind schedule and based upon the global supply chains isn’t going to get much better for a while.  The result is that NY State utility costs are going to skyrocket, while In the interim, the state’s rose colored glasses regarding the rate of renewable installation are leaving dirty fossil fuel plants operating that could have been replaced by far better options.  They are burning more fossil fuel than necessary and emitting more CO2, SOx and NOx than could be achieved with a sensible policy.  

It’s one thing to want to implement a policy.  It’s a huge jump to providing the logistics needed to actually implement it.

Rich

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