Developing renewable and clean technology companies in New York
Friday, December 4, 2009
Cape Wind project energized by power purchase agreement with National Grid
The same week that the New York Power Authority announced that it was issuing a RFP for the first fresh water offshore wind farm in North America as part of a Great Lakes wind initiative, National Grid (with NYS headquarters in Syracuse) has entered into negotiations with Cape Wind for an agreement to purchase electricity generated by a large proposed offshore wind project in Nantucket Sound. It is expected that the power purchase agreement (PPA) will boost Cape Wind’s financing prospects to build the 130-turbine project off the coast of Cape Cod, reports an article in Environmental Leader. The agreement still has few hurdles to overcome before it’s finalized, including the approval of processes and final agreement by the Department of Utilities, according to the article. The project also has the support of several key Massachusetts officials, who have been urging President Obama for federal approval of the Cape Wind project before next week’s climate talks Copenhagen. The PPA is critical for financing the proposed offshore wind farm in order to start construction and operation in time to qualify for federal incentives, which would reduce the cost of the project by 30 percent, reports North American Wind Power.