Articles filed under Taxes & Subsidies from Massachusetts

Vineyard Wind execs buoyed by report

A September report from Bank of America Merrill Lynch indicated that the federal Bureau of Ocean Energy Management would approve projects like Vineyard Wind in a timely manner, Beane said. The report said timing of permitting affects whether offshore wind developers can take advantage of federal investment tax credits that are expected to expire in 2024.
1 Oct 2018

Offshore wind prices look competitive

The Vineyard Wind project is split into two, 400-megawatt phases, with the first phase scheduled for completion by January 15, 2022, and the second phase by January 15, 2023. The price for energy and the environmental attributes (called renewable energy credits) starts at 7.4 cents a kilowatt hour in phase one and 6.5 cents a kilowatt hour in phase two. The prices escalate at 2.5 percent a year over the 20-year life of the contract, with an average blended cost of 8.9 cents a kilowatt hour.
2 Aug 2018

DPU oks new fees on solar, wind installations

“The department concedes that customers taking net metering services directly receive the benefits of the net metering system,” the DPU said in its ruling. “The costs of net metering, however, are borne by all electric customers, whether or not they receive net metering credits. Consequently, there is a transfer of costs rooted in the net metering system.”
9 Jan 2018

Could Cape Wind have put up a bigger fight?

The typical price of a tax equity investment for an on-shore project that carries no debt is between 7.5 and 8.5 percent. By adding debt to the project, the range increases to the mid teens. ...“Admittedly it is being built by Siemens but there are also a lot of local contractors. ...It’s complex, so that would make any first time investor in the offshore industry nervous. So that puts your price of tax equity north of the mid teens, which makes it incredibly expensive."
21 Jan 2015

Critic blasts Cape Wind tax credit

Rodgers said the contract was the result of prolonged negotiations, and said the timing of the announcement was not related to the expiration of the federal tax credit. He declined to say if Cape Wind would be eligible for the tax credit without the cost of the contract. The tax credit, if awarded, could pay for 30 percent of construction costs.
24 Dec 2013

Cape Wind seeking government help to secure financing

Parker hopes that Cape Wind can't find lenders to help pay the more than $2 billion it will take to build 130 wind turbines, each one rising more than 400 feet out of Nantucket Sound. Cape Wind at one point said they would have no problem borrowing money to build the wind farm if the Massachusetts Department of Public Utilities approved generous agreements with power companies.
23 Oct 2013

Investor lifts Cape Wind's sails

In a statement released Tuesday, officials with PensionDanmark -- a nonprofit labor market pension fund with $24.7 billion in assets -- said they would provide a mezzanine loan for the offshore wind project planned for Nantucket Sound. In its press release, PensionDanmark states that its commitment is conditional on a final investment decision that will be made by the end of the year.
19 Jun 2013

Tax credits complicate Cape Wind, South Terminal schedule

Barton said that in order for Cape Wind to be eligible for the federal tax credit, it must "commence construction" before the end of the year, but the federal government has not yet clarified what exactly commencing construction means. ...Cape Wind may have to place the monopilings, or foundations, of at least some of the project's 130-turbines before the Jan. 1 deadline.
16 Feb 2013

Cape Wind loses out on US loan guarantee

The department said that with the multibillion dollar loan program's September expiration date approaching, remaining funds would be used on projects whose applications were further along. "This is not a statement about the quality of your project, but simply about its readiness to proceed at this time."
14 May 2011

http://www.windaction.org/posts?location=Massachusetts&topic=Taxes+%26+Subsidies&type=Article
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