Addressing climate issues and creating new sources of energy is a priority in New York and all over the world. This is viewed as a great benefit for the planet and may be cost-effective for businesses and individuals.
However, many of these projects are in their infancy and it is important for businesses to understand how to develop energy projects and take part in opportunities as they arise. One type of energy that is becoming increasingly prominent is offshore wind. As one new project in New York gets underway, businesses should be aware of how to take advantage while dealing with potential obstacles.
Offshore wind project advances in New York
Construction has begun on an offshore wind project in New York. Its architects are hopeful it will begin producing toward the end of 2023. This is one of several such projects dotting the East Coast.
Still, there are lingering questions about its viability as some developers have expressed concern about how much it would cost. Part of that is due to the current state of the economy and how supply chains are impacted.
For these projects, steel and copper are needed and these commodities have been highly expensive since mid-2021. Part of the challenge that companies involved in offshore wind faced is that electricity prices need to be known beforehand. The price of material could be problematic for companies to recover their investment and profit.
Wind energy is not expected to be widespread for many years and some materials still need to be created. Despite that, the supply chains across the United States are advancing. Part of that is due to the Inflation Reduction Act granting tax credits for these types of projects benefiting developers. In early 2022, developers spent more than $4 billion to install wind turbines off the coasts of New York and New Jersey. This is happening in several areas across the nation.
For complex energy projects, the right type of legal guidance is key
As this shows, energy projects can be complex and costly. There can be difficulty in meeting the regulatory requirements and acquiring all that is necessary to move forward with it effectively.
For businesses that are involved in these advanced energy projects that are just getting off the ground, it is imperative to have experienced and comprehensive legal guidance to achieve the stated objectives. This is a specific area of the law that requires tailored help. Calling for energy law assistance early on can be crucial to achieving the desired ends.