Comments on TommyWonk: NRG and Bluewater: Is There a Catch?

Months ago, before the bluewater wind acquisition,...

2009-11-12T13:35:26.540-05:00

Months ago, before the bluewater wind acquisition, the CEO of NRG was talking about investing in off-shore wind.

http://www.reuters.com/article/companyNews/idUKN0552631920090805

NRG's Drew Murphy said the company was interes...

2009-11-11T16:53:09.217-05:00

NRG's Drew Murphy said the company was interested in building more wind capacity. From what I understand the Bluewater wind farm would become more efficient on a unit basis if it is expanded from its current size, though I have not been told what the optimal size would be.

I have no interest in burnishing NRG's public image. I want to see the company build the biggest wind farm the grid can absorb.

Given the current economic situation, NRG probably...

2009-11-10T19:14:45.965-05:00

Given the current economic situation, NRG probably acquired Bluewater for a song. After all, what assets does Bluewater really have? That power purchase contract with Delmarva is less of an asset and more of a piece of paper. Contracts are broken all the time, usually accompanied by expensive lawsuits. A contract really guarantees nothing.

I would agree that if and when the Delaware wind farm is actually built, NRG would want to sell every single kilowatt-hour of energy produced simply because that represents revenue generated by already sunk capital investment.

However, where my nagging concern comes in has to do with how enthusiastically NRG will be in expanding the initial wind farm project and in attempting to build other offshore wind farms on the East Coast. It would be very disappointing if it turned out that NRG's intent was to use the Delaware wind farm project simply as a PR vehicle to show how progressive and 'green' they are, all the while stifling any future Bluewater wind projects, using the rationale that they are not cost-effective.

Often it is better to co-opt and gradually absorb the enemy than to defeat him outright. Let's hope this is not what NRG has in mind.