Under the terms of the 15-year PPA, National Grid will buy 50 percent — or 210-megawatts — of the project’s future output and get renewable energy credits. Cape Wind will sell the power, generated by the 130 Siemens wind turbines to be deployed across Nantucket Sound, for 20.7 cents per kilowatt-hour. That’s about double the typical rates for power in New England. The price will increase by 3.5 percent over the contract’s lifetime. Last week Interior Secretary Ken Salazar granted Cape Wind a crucial federal permit. The plant is set to start operating in late 2012.
Cape Wind actually filed two contracts with the state’s PUC, one for National Grid. The other is a blueprint for a future PPA to sell the balance of the plant’s output and its clean energy credits.
, National Grid President Tom King said:
Carbon-based generation comes with its own set of long-term costs to our health and our environment. Cape Wind is an investment in our future, and one that we must support if we are to achieve a lower-carbon energy portfolio.
In the U.S., National Grid delivers electricity to approximately 3.3 million customers in New England and New York.
The PPA and the turbine supply signed with Siemens Energy in March are key developments that will let Cape Wind start serious discussion with banks to secure financing for the project, which is expected to cost about $1 billion to build.