WHAT OFFSHORE WIND FACES

Overcoming The Cold Realities Of The Offshore Wind Power Market
Mark Del Franco, 19 January 2012 (North American Windpower)

"The offshore wind industry requires patience from developers and investors who have the vision to support projects through the inevitable peaks and valleys associated with offshore wind energy…[An example is] NRG Bluewater's decision to not extend its power purchase agreement (PPA) with Delmarva Power & Light for a 200 MW wind project off the coast of Delaware…[It was a reminder of the cold realities of today's market…

"…[T]he termination of NRG Bluewater’s contract should not necessarily be seen as the company’s failure to attract investment...[T]ime is required for offshore projects located in federal waters…due to the complexity of the regulatory leasing process."

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"…[Investors are more optimistic about…Deepwater Wind's 30 MW Block Island project…[because it] is planned for state waters three miles southeast of Block Island, R.I…[and] does not require a full federal determination…[though] it still must work with federal agencies…

"…[O]ffshore wind… is located 15 to 20 miles from the population centers…[so its power can readily be delivered] where the need is greatest…[There is] not only the cost of the power and the turbines, but also the transmission…[and offshore wind offers] economic and environmental benefits…[T]here is a lot of interest from international players, particularly from European companies that have already built offshore wind projects and are seeking U.S. participants with which to partner…"