In today’s construction news, read about final rules that outline the amount of unintentional injury that can occur to marine mammals during US Wind’s project construction and operation off the coast of Maryland, as well as how US Wind must minimize such losses that have been released by the National Oceanic and Atmospheric Administration’s (NOAA) Fisheries. Meanwhile, as a decline in multifamily projects offset an increase in single-family home construction, US housing starts slowed in September. Lastly, according to our recently published data, the average construction costs in the United States for wind turbines and solar photovoltaic systems in 2022 were nearly identical to those in 2021, whereas natural gas-fired electricity producers saw an 11% decline. In 2022, the average building costs of wind turbines and solar generators rose 1.7% and 1.6%, respectively.
Damage to Marine Mammals During US Wind Offshore Construction Regulated by NOAA
Original Source: NOAA Issues Regulations on Accidental Harm to Marine Mammals During US Wind Offshore Construction
The NOAA Fisheries has published final regulations on how much incidental injury to marine animals US Wind can cause during project building and operation off Maryland’s coast and how it must remediate those losses.
US Wind Wind may deploy wind turbine generators off Worcester County, MD, with export cables into 3Rs Beach in Sussex County, DE.
US Wind requested a Letter of Authorization from NOAA in January 2024 to cover any negative affects to small numbers of marine mammals during construction, starting NOAA’s wildlife research. This Letter of Authorization is now possible due to NOAA’s requirements.
Following BOEM’s July 2024 release of the project’s projected environmental consequences, NOAA’s completed rules were released.
US Wind’s project will be regulated for five years, with an adaptive management component if marine animal studies shows that development impacts them.
The offshore wind farm may affect the North Atlantic right whale, humpback whale, orca, bottlenose dolphin, harbor porpoise, and gray seal, according to laws.
North Atlantic right whales migrate across Delmarva and are highly endangered. Recent research shows whale numbers have increased but remain endangered.
NOAA recommends studying US Wind’s project impact on right whales due to their fragile population. No major whale injury or death is expected or authorized under the regulations, says NOAA.
US Wind staff and contractors must be trained and coordinated to be aware of marine animals in the construction zone, and many vessel hit avoidance procedures are required. US Wind must monitor marine mammals and keep appropriate distances to avoid collisions.
North Atlantic right whales need a 500-meter buffer from vessels.
NOAA also discusses marine creatures’ auditory effects from construction.
The regulations state that US Wind must use the lowest energy settings on equipment that could harass marine mammals (e.g., boomers) and turn off equipment when not actively surveying to reduce source levels.
The Federal Register contains NOAA’s 196-page study and rules.
Multifamily Construction Declines in the US Housing Sector Begins to Decline
Original Source: US Housing Starts Ease on Decline in Multifamily Construction
In September, US housing starts fell as multifamily projects fell more than single-family projects rose.
After a strong August, housing starts fell 0.5% to 1.35 million last month, according to government data released Friday. The median forecast in a Bloomberg economist survey was met in September.
A barometer for future construction, building permits declined 2.9% to 1.43 million yearly. Single-family home construction permits rose 0.3% to 970,000.
Single-family housing starts rose 2.7% to 1.03 million, the most in five months. Multifamily house construction fell 9.4% to a four-month low.
Even while single-family home construction is rising, it is down from the rapid pace of late 2021 and early 2022, when mortgage rates were close to 3% and a historic shortage of existing homes drove demand.
After the Federal Reserve raised interest rates to the highest level in two decades, demand fell, leaving homebuilders with the greatest supply of new homes in 16 years.
Since 2022, third-quarter GDP has been cut most by home construction. The Atlanta Fed’s GDPNow projection predicted a 0.43 percentage point drop in residential investment after a 0.11 percentage point drop in the second quarter.
Among the four areas, one-family house starts increased 6.6% in the South to a five-month high and 10.6% in the Northeast.
Since mortgage rates rose from a two-year low in mid-September, a sustained housing rebound will take time. However, builders on recent conference calls were optimistic about cheaper home financing after the Fed cut interest rates by a half-point last month.
Sal Guatieri, senior economist at BMO Capital Markets, said home building will likely stay static until the Fed is well into its easing cycle and mortgage rates fall another one percentage point.
Lower borrowing costs should revive the resale market, which would boost demand for new houses, says KB Home CEO Jeffrey Mezger.
“There’s a lot of people that are locked out of moving up because there’s not enough product, or they don’t want to sell their current home, but they need to move up,” Mezger said on the company’s earnings call last month “I think it opens up. If inventory rises, the housing food chain will open.
The official data reveal that new single-family home completions fell 5.7% to 1.68 million annually and the number of projects under development fell about 2% to an almost three-year low.
The government reported 90% confidence that the monthly change ranged from a 13.5% fall to a 12.5% gain for the volatile new building statistics.
Wind and Solar Building Costs Grew Somewhat in 2022, but Natural Gas Fell
Original Source: U.S. construction costs rose slightly for solar and wind, dropped for natural gas in 2022
According to our recent statistics, solar photovoltaic systems and wind turbines had similar construction prices in 2022 as in 2021, whereas natural gas-fired electricity producers dropped 11%. The average construction cost of solar generators rose 1.7% and wind turbines 1.6% in 2022.
In 2022, 86% of U.S. electric grid capacity came from solar, wind, and natural gas. Electric-generating capacity investment fell 27% to $36.9 billion in 2022 from 2021.
EIA-860, Annual Electric Generator Inventory, reports generator cost statistics. This page uses our electric generator building costs statistics, which organize nominal construction cost numbers for generators installed in each reporting year. The latest data examines prior trends. Our Short-Term Energy Outlook covers cost trends and more.
Solar construction costs in the U.S. rose 1.7% to $1,588 per kilowatt (kW) in 2022. In particular, crystalline silicon tracker panel production costs rose 13% to $1,605/kW, the highest since 2018.
Crystalline silicon fixed-tilt panels were the most expensive solar technology at $1,788/kW, but its construction cost dropped 13%. Average Cadmium telluride panel cost dropped 6% to $1,529/kW in 2022.
The majority of US solar panels are crystalline silicon tracking panels. Solar tracking systems automatically track the sun, offering more continuous sun exposure and electricity production than fixed-tilt systems.
Wind
In 2022, U.S. onshore wind turbine building costs rose 1.6% to $1,451/kW. Higher construction expenses for wind farms over 100 MW caused higher costs. Wind farms between 100 MW and 200 MW cost $1,614/kW, up 10%. Large wind farms (above 200 MW) cost $1,402/kW to build in 2022, up 1.4%. The average cost of building 1 MW to 100 MW wind farms dropped 7.3% to 1,806/kW in 2022.
Natural gas
Average natural gas-fired generator building costs declined 11% between 2021 and 2022. The drop was mostly due to lower combined-cycle facility costs. The average combined-cycle generator construction cost reduced 42% to $722/kW in 2022.
Other natural gas technologies cost more in 2022. Between 2021 and 2022, combustion turbine building costs almost doubled to $1,006/kW, and natural gas-fueled internal combustion engine costs rose 27% to $1,677/kW.
Summary of today’s construction news
In summary, the rules include several vessel strike avoidance procedures and mandatory training and coordination for US Wind staff and contractors to be aware and vigilant for the presence of marine animals in the development zone. In order to reduce the likelihood of collisions, US Wind will need to keep an eye out for marine creatures and keep a safe distance from them.
Meanwhile, according to government data, the number of projects under construction fell by about 2% to a nearly three-year low, while the number of new single-family house completions fell by 5.7% to an annual pace of 1.68 million, according to the starts report. The government report said that the monthly change ranged from a 13.5% fall to a 12.5% gain, indicating the volatility of the new home building data.
Lastly, the cost of building wind farms with capacities ranging from 1 MW to 100 MW decreased by an average of 7.3% to 1,806/kW in 2022. The average cost of building a combustion turbine nearly doubled to $1,006/kW between 2021 and 2022, while the cost of building natural gas-fueled internal combustion engines rose by 27% to $1,677/kW.
