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National Grid agrees to buy 50% of Cape Wind power

National Grid Plc, an owner of utilities in the U.S. and U.K., will seek regulatory approval to sign a contract to buy half of the power output from the Cape Wind project off the coast of Massachusetts. Under the 15-year contract, National Grid will pay 20.7 cents a kilowatt-hour for the wind power output starting in 2013, and the price will increase 3.5 percent each year, the Waltham, Massachusetts-based company said today in a statement.

National Grid Plc, an owner of utilities in the U.S. and U.K., will seek regulatory approval to sign a contract to buy half of the power output from the Cape Wind project off the coast of Massachusetts.

Under the 15-year contract, National Grid will pay 20.7 cents a kilowatt-hour for the wind power output starting in 2013, and the price will increase 3.5 percent each year, the Waltham, Massachusetts-based company said today in a statement. Residential customers currently pay about 8 cents to 10 cents a kilowatt-hour, said Tom King, president of National Grid U.S.

U.S. Interior Secretary Ken Salazar last month approved the first wind farm in U.S. waters, a $1 billion project to install 130 Siemens AG turbines in the shallow waters of Nantucket Sound. Cape Wind will generate enough power for more than 200,000 average U.S. homes, the department said.

"Cape Wind is a catalyst for developing large-scale renewable-energy projects," King said today at a news conference in Waltham, Massachusetts. London-based National Grid delivers power to about 3.3 million customers in the U.S. Northeast, including the island of Nantucket.

FAA Approval Needed

Cape... more [truncated due to possible copyright]  

National Grid Plc, an owner of utilities in the U.S. and U.K., will seek regulatory approval to sign a contract to buy half of the power output from the Cape Wind project off the coast of Massachusetts.

Under the 15-year contract, National Grid will pay 20.7 cents a kilowatt-hour for the wind power output starting in 2013, and the price will increase 3.5 percent each year, the Waltham, Massachusetts-based company said today in a statement. Residential customers currently pay about 8 cents to 10 cents a kilowatt-hour, said Tom King, president of National Grid U.S.

U.S. Interior Secretary Ken Salazar last month approved the first wind farm in U.S. waters, a $1 billion project to install 130 Siemens AG turbines in the shallow waters of Nantucket Sound. Cape Wind will generate enough power for more than 200,000 average U.S. homes, the department said.

"Cape Wind is a catalyst for developing large-scale renewable-energy projects," King said today at a news conference in Waltham, Massachusetts. London-based National Grid delivers power to about 3.3 million customers in the U.S. Northeast, including the island of Nantucket.

FAA Approval Needed

Cape Wind still needs approval from the Federal Aviation Administration because the turbines may interfere with tower-to- aircraft transmissions. Developers must also get financing for the project, which may cost more than double their $1 billion estimate, said Ethan Zindler, head of North American research for Bloomberg New Energy Finance.

Cape Wind President Jim Gordon said he's talking to utilities and power marketing companies in the region for the remaining 50 percent of the project's output, as well as bankers to finance it. He's also talking to marine construction firms for contracts to begin building the offshore wind farm by the end of this year.

"Cape Wind is in intense negotiations," Gordon said at the media briefing. "Cape Wind is convinced we will sell the other 50 percent."

A legal challenge to the wind farm is pending in the Massachusetts courts, and more lawsuits are likely, according to Pat Parenteau, a professor at Vermont Law School in South Royalton who specializes in ocean and coastal resources.

Customer bills will increase by about $1.59 a month, National Grid estimated, based on forecasts of what customers will pay for power in 2013.

Cape Wind would generate a maximum of 468 megawatts from turbines spread over 25 square miles about 5 miles off mainland Cape Cod, in an area known as Horseshoe Shoal.


Source: http://www.businessweek.com...

MAY 7 2010
https://www.windaction.org/posts/26113-national-grid-agrees-to-buy-50-of-cape-wind-power
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