Agreement gives Cape Wind "the critical mass to continue securing project financing."
Cape Wind has secured another major milestone with the approval by the Massachusetts Department of Public Utilities (DPU) of the 15-year Power Purchase Agreement (PPA) with NSTAR to buy Cape Wind’s energy, capacity and renewable energy credits.
Cape Wind President Jim Gordon says, “This decision helps secure the position of Massachusetts as the United States leader in offshore wind power, launching a new industry that will create jobs, increase energy independence and promote a cleaner and healthier environment. With this decision, Massachusetts electric consumers have secured an abundant, inexhaustible, and clean energy resource that provides price stability and avoids all of the external costs of fossil fuels. Finally, our region will no longer be at the end of the energy pipeline, by harnessing an endless supply of offshore wind power, we will be producing homegrown and clean energy right here.”
The NSTAR/Cape Wind PPA is for 27.5% of Cape Wind’s power. In December, 2011, the Massachusetts Supreme Judicial Court unanimously upheld the DPU’s approval of Cape Wind’s PPA with National Grid for 50% of Cape Wind’s power.
Theodore Roosevelt IV, managing director of Barclays and Cape Wind’s Financial Advisor says, “Taken together, these two PPAs provide Cape Wind with the critical mass to continue securing project financing.”
Gordon adds, “We are very pleased with the favorable reception we have been experiencing from the financial community and this approval of our PPA with NSTAR will further help Cape Wind secure financing and deliver all of the public benefits this important project will provide.”