CAPE WIND GETS NEW MONEY

Cape Wind to proceed after 129MW NStar PPA
James Quilter, 16 February 2012 (Windpower Monthly)

"Plans to build the Cape Wind 468MW project in Nantucket Sound, Massachusetts, took a big step forward after the state PUC made the merger of two utilities NStar and Northeast Utilities conditional on signing a power purchase agreement with the wind farm.

"Cape Wind has all of the necessary permits to build the project…[but] only has a PPA with National Grid for 50% of the 468MW project and has been struggling to find a buyer for the remaining half to finance the build…Nstar is to purchase 129MW of capacity from the project as of its $4.8 billion acquisition by Northeast Utilities. Cape Wind said this would allow the project to be constructed."

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"Last year, Cape Wind called on the Massachusetts Department of Public Utilities to make NStar/Northeast buy the remaining 50% in order to fulfil its renewables obligations. At the time, there was a question over whether this was possible as NStar has tended to prefer onshore wind and has acquired PPAs in several projects…

"The decision...[will allow Cape Wind’s] the search for project financing. Last year, there was speculation that Cape Wind may tap into the bond market for financing…[T]he Department of Energy [shelved the project's] application for a loan guarantee for the $2 billion project…[A]t one point Siemens [the project’s turbine supplier] said it would consider financing the project…"