Boston, United States [RenewableEnergyWorld.com] Massachusetts Governor Deval Patrick this week announced that National Grid and Cape Wind have agreed to enter into negotiations for a long-term contract under which the utility would purchase the electricity generated by Cape Wind. The Power Purchase Agreement (PPA) is expected to be a critical requirement for financing the proposed offshore wind farm in Nantucket Sound. The PPA still has to go through state regulatory review.
“For both reducing greenhouse gas emissions and launching the offshore wind industry that will achieve those reductions, it is essential for Cape Wind, like offshore wind in general, to move from wishful thinking to reality,” Governor Patrick said. “A contract with an electric distribution utility like National Grid will move Cape Wind one step closer to reality.”
National Grid is expected to file a Memorandum of Understanding with Cape Wind that includes the rationale for the deal, as well as the timelines by which the parties will pursue an agreement, with the state Department of Public Utilities (DPU). If DPU gives approval to the process, National Grid and Cape Wind will enter into a mutually agreeable long-term contract and submit any final pact to DPU for review and approval.
“Today’s announcement is a demonstration of how the Patrick Administration’s vision and desire for a cleaner, more secure energy future will put Massachusetts at the forefront of the emerging offshore wind industry,” said Jim Gordon, president of Cape Wind. “We look forward to working with National Grid to deliver Cape Wind’s energy, economic and environmental benefits to the region.”
