Off Shortage

Over $765 million in renewable projects slated for cancellation

Investment in renewable energy projects continues to be in limbo. Just this week, the Department of the Interior announced a settlement agreement with affiliates of Invenergy, one of North America’s largest privately held operators of independent power infrastructure.

The decision is aimed at "strengthening American security and lowering costs," as well as "advancing goals central to the Energy Dominance Agenda," according to a June 17 press release from the Department of the Interior.

As part of the settlement agreement, Invenergy will voluntarily terminate its affiliates’ four offshore wind leases located in the New York Bight, Central Coast of California and the Gulf of Maine totaling $765 million, and redirect that amount towards other domestic energy sources with the demonstrated capability to deliver reliable, affordable power, including the development of natural gas-fired power plants in Indiana, Wisconsin, Iowa, Kansas, and Missouri and geothermal power generation projects in the Western U.S.

These "landmark settlement agreements," as DOI describes them, will reportedly "provide partial reimbursement for offshore wind leases that required significant taxpayer support," adding that "by ending these leases and encouraging investment in reliable, cost-effective conventional energy sources, the settlement agreements promote mutually beneficial projects designed to deliver strong returns for American taxpayers."