The Massachusetts Department of Public Utilities (DPU) has approved the 15-year power purchase agreement between National Grid and Cape Wind, following a five-month-long review.
In a statement the DPU said the pioneering, 420 megawatts offshore wind power plant was cost-effective “because its benefits well exceed its costs.” Last week G.E.R. reported that the DPU was close to wrapping-up its five months-long review and that a decision was expected this week.
It is abundantly clear that the Cape Wind facility offers significant benefits that are not currently available from any other renewable resource, and that these benefits outweigh the costs of the project, said DPU Chairman Ann Berwick, in a prepared statement.
The contract, which is for 50 percent of the output of the Cape Wind offshore wind facility, sets the initial price for electricity, capacity, and renewable energy attributes at 18.7 cents per kilowatt-hour in 2013, and rising 3.5 percent annually for 15 years.
By approving the PPA before year-end will allow Cape Wind to apply for key stimulus funds, like 1603 cash grants, which are all set to expire at the end of this year.