Friday, June 24, 2011

Bluewater Wind Contract Terms Extended

NRG Bluewater Wind yesterday announced that it had agreed with Delmarva Power to postpone payment of security deposits required as part of the power purchase agreement. NRG has cited uncertainty about the restoration of loan guarantees in delaying the construction of a meteorological tower until next year. The News Journal reports that NRG sees some hope that the loan guarantees would be restored:
But NRG officials have one small reason for optimism: The House Appropriations Committee recently voted to restore a fraction of the loan guarantee money for those projects that have already applied.
As the news website Delaware First reports, Governor Markell supports a short delay in the contractual timetable:
Governor Jack Markell’s office is pleased that the extension allows more time to work out the concerns that threaten the project, but spokesman Brian Selander also noted the limited nature of the extension, saying that the Governor did not want an “open ended” timetable.
An indefinite delay in the project could put Delaware at a competitive disadvantage in attracting the supply chain and assembly business that will need to be put in place to build offshore wind projects up and down the east coast. If NRG allows the timetable to slip back another year without a definitive start date, then suppliers would be less likely to set up shop in Delaware.

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