Bringing Offshore Wind up to Scale
New England can be described in many ways, but "big" is not one of them. And with some areas relatively densely populated and state mandates for renewable energy looming, small projects help, but only go so far. In other words, no wind farms measured in the hundreds of megawatts or scores of square miles like in other regions.
In recent weeks a major utility executed a power purchase agreement and entered negotiations on a second, both for offshore wind. "We are focused on what our options and the available technology and where we can scale up project," said Tom King, president of National Grid USA. And in New England scale means not land-based. National Grid has a 20 year PPA with Deepwater Wind, with up to eight turbines to be erected 3 miles off Block Island. Once completed the developer is proposing a 200 megawatt project seven miles further out.
National Grid also entered into negotiations with
Cape Wind for a proposed 140-turbine off Cape Cod. There's some urgency on Cape Wind's side to start construction by the end of 2010 to take full advantage of the stimulus programs that have converted tax credits of 10 years' duration into cash grants.
I asked King if the Rhode Island sets a baseline for electricity prices offshore and he said it would not. "We started north of 30 cents per kilowatt-hour and after negotiations that concluded some weeks ago, a price of 24.4 cents was reached," he said. Not cheap, but 20 percent below the beginning point.
And deeper water presents in Rhode Island presents a different set of a challenges and is likely more expensive. Cape Wind's proposal is in the shallower Horseshoe Shoals of Nantucket Sound with construction of the towers supporting the wind turbines expected to be less expensive. How much less? Well, that's what negotiations are going to determine with Massachusetts regulators giving the green light for them to begin at the end of December. The whole region awaits the outcome.
The editorial staff at RenewablesBiz.com is passionate about exchanging ideas and dedicated to promoting ongoing conversation about renewables and sustainable energy issues. We invite you to join and contribute to our online community. If you have an idea for an article or editorial contribution, please contact me via email,[email protected], or phone, 860.633.0090.