RHODE ISLAND BACKS OFFSHORE WIND

Deepwater Wind and National Grid Sign Historic 20-Year Power-Purchase Agreement for Offshore Wind Energy
December 9, 2009 (State of Rhode Island/Office of the Governor)

"…Deepwater Wind and National Grid have signed a 20-year, power-purchase agreement, marking a significant milestone in Rhode Island’s path toward developing the nation’s first offshore wind farm and establishing a green-collar industry. The agreement marks only the nation’s second such power-purchase agreement for renewable, offshore wind energy.

"Under the terms of the agreement, National Grid will purchase the energy generated from Deepwater Wind’s Block Island Wind Farm at a cost of 24.4 cents per kilowatt hour in the first full year of operation expected to occur in 2013, escalating at 3.5% per year. This would translate into an increase on the typical 500 kilowatt-hour residential customer monthly bill for National Grid customers of approximately $1.35 per month in that year...subject to the review and approval of the Rhode Island Public Utilities Commission…"

Rhode Island's offshore wind assets are remarkable. (click to enlarge)

"In 2005, [Rhode Island Governor Donald Carcieri], with the support of the General Assembly, established the Office of Energy Resources, which is responsible for engaging the stakeholder and scientific community, creating the parameters for viable wind farm proposals, and choosing the best offshore wind project developer for Rhode Island. In 2008, Deepwater Wind was selected as the state’s preferred offshore-wind developer. In 2009, the General Assembly passed historic long-term contracting legislation that set the conditions for [the] power-purchase agreement…

"Deepwater Wind plans to develop the Block Island Wind Farm in state waters, about three miles off the southeastern coast of Block Island. This demonstration project will include up to eight turbines and will provide clean, stable power at mainland rates for Block Island residents, who now pay some of the nation’s highest electric prices. The wind farm will provide approximately one percent of Rhode Island’s energy needs."

Some the pockets are even richer. (click to enlarge)

"Deepwater Wind later plans to build a large-scale wind farm, with about 106 turbines, located in federal waters about 15 miles from nearest landfall. The energy cost for the utility-scale Rhode Island Wind Farm will be lower than that of the Block Island Wind Farm because of the economies of scale, the shortening of the supply chain from a more developed industry, and the creation of a robust, sustainable local workforce. Deepwater must execute a separate power-purchase agreement for the power generated from the larger wind farm.

"Last summer, Deepwater Wind reached an agreement to develop 117 acres at Quonset Point, in North Kingstown, as a hub of manufacturing operations for the offshore wind industry…"