OCEAN WIND BLDR DESPERATELY SEEKING BACKER

NRG Energy's Bluewater Wind Puts The Brakes On Offshore Wind Farm
13 December 2011 (North American Windpower)

"NRG Energy… is halting active development of offshore wind projects for the near term. This includes the development of the Mid-Atlantic Wind Park, which had been planned off the coast of Delaware by NRG's subsidiary, Bluewater Wind…[but] Bluewater Wind has been unable to find an investment partner and intends to terminate the project's 200 MW power purchase agreement (PPA) with Delmarva Power & Light Co…the first offshore wind PPA in North America - by Dec. 23.

"Since NRG acquired Bluewater Wind in November 2009, the company has made significant financial investments in development to move the offshore wind project forward...[T]he outlook for offshore wind was positive [then]…[Now] the outlook for offshore wind and for the Delaware project has changed dramatically…[due to the elimination of] funding for the DOE’s loan-guarantee program applicable to offshore wind, and the failure to extend the federal investment and production tax credits for offshore wind…[ rendering] the Delaware project both unfinanceable and financially untenable…"

If Bluewater can build its project, it will have a big market. (click to enlarge)

"NRG will close its Bluewater Wind development office but preserve its options by maintaining its development rights and continuing to seek development partners and equity investors. If and when market conditions improve and the company is able to find partners, NRG says it will look to deploy the wind park and explore other viable offshore wind opportunities in the Northeast…

"NRG Bluewater's founder and president, Peter Mandelstam… has spent the last two weeks in Europe talking up the project to potential investors…[and said alternative plans are] in the works…"