Massachusetts utility NStar has agreed to buy power from the Cape Wind offshore wind farm for more than double the projected cost of electricity from conventional sources over 15 years. That’s according to the Washington Post.
The contract totals about $1.6 billion, assuming the project nets tax credits. The Washington Post says that’s $940 million above the market price for electricity.
Critics say Cape Wind’s power is too costly. And, Audra Parker, president of the Alliance to Protect Nantucket Sound, says the NStar contract is further proof of that assertion.
In an earlier deal between Cape Wind and National Grid, state regulators and the state’s highest court determined the project is worth the cost because of benefits like jobs, clean air and a reliable renewable power source.
NStar says the deal will add $1.08 to each customer’s average monthly bill.
Cape Wind was first proposed in 2001, but the project has met resistance due to its location. It is still looking for financing, the Washington Post notes.
The contract with NStar for 27.5 percent of its projected power output, combined with National Grid’s deal for 50 percent means Cape Wind has guaranteed customers for most of its power. Cape Wind believes this will help it attract investors.
The pricing on the NStar deal is identical to the National Grid deal.
To read the full Washington Post article cited in this story, click here