Cape Wind Eyes Potential Equity Sale

Cape Wind, the Boston-based offshore wind developer, is considering selling an equity stake to one or more strategic partners to raise capital to support construction of its 420-megawatt offshore wind farm to be constructed on the Nantucket Sound, an industry source tells G.E.R.

Is Siemens one of the equity partners Cape Wind is talking to? No, says the industry source. Siemens, as part of its turbine supply agreement with Cape Wind, plans to setup its North American offshore wind office in Boston.

Besides an equity sale, Cape Wind and its financial adviser, Barclays Capital, are also talking to project finance banks to structure the long-term bank debt package portion of the financing. Our source declined to name banks Cape Wind is talking to.  Some estimate put the price tag for Cape Wind at about $1 billion.

In a span of a few weeks  Cape Wind has signed a supply contract with Siemens for 130 wind turbines; Scored a crucial Interior Department federal permit; And last week announced it would sell half of its electricity output to National Grid for 20.7 cents per kWh. The rate is about double what’s typically paid for electricity in National Grid’s service area.  The price will increase by 3.5 percent over the contract’s lifetime.

Image: iStockphoto

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