Bluewater Wind Signs Contract for Sale of Offshore Wind Power

Bluewater Wind Delaware LLC, a subsidiary of Babcock & Brown, announced that it has signed a 25-year contract with Delmarva Power to sell the utility up to 200 megawatts (MW) of power from an offshore wind farm that will be built 11.5 miles off the coast of Rehoboth Beach in Delaware.

Delmarva Power has agreed to purchase 200-MW of the power produced by the wind farm that is expected to have an output of up to 600 MW. Bluewater Wind will determine the final size of the wind farm within two years, during which time the company will seek additional buyers of power.

The agreement requires legislative approval of changes to the state’s Renewable Portfolio Standard (RPS) to allow for renewable energy credits (RECs) from the offshore wind farm to be credited to Delmarva Power’s account at a rate of 350% (or 3.5 credits) per REC.

In addition to its contract with Delmarva Power, Bluewater Wind has entered into a Memorandum of Understanding with the Delaware Electric Municipal Corporation for the sale of approximately 100,000 to 150,000 megawatt-hours of power and 17 MW of capacity to its nine municipal members.

“This contract is a significant step toward developing Delaware’s first offshore wind farm, which will almost certainly be the first offshore wind farm in the country,” said Hunter Armistead, head of Babcock & Brown’s North American energy group. “This offshore wind farm will harness the strong winds off the coast of Delaware to bring clean and renewable energy, stable power rates and new jobs to the area.”

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