Dec 27, 2011 posted by: Andrew Koch-WGMD News
UPDATED DECEMBER 28: State Rep. John Atkins weighed in on NRG’s decision to not only put its plans for a wind farm in the waters off Rehoboth Beach on hold, but also on its decision to cancel the power purchasing agreement it had reached with Delmarva Power back in 2008. Atkins called in to WGMD this morning (Dec. 28) to offer his take on NRG’s move. He said he’s long questioned the viability of such a project, expressing concerns about the durability of the turbines in the salt water and air, but also their proximity to shipping lanes for tankers traveling into the Delaware Bay on their way up to the Ports of Wilmington and Philadelphia.
Atkins also agreed with an earlier caller who said that if alternative energy projects were as viable as their supporters say they are, private businesses would’ve already jumped on board to invest in them.
Atkins has said that he’s opposed these projects because of talk that it would lead to the closure of the Indian River Power Plant, a major employer in his district, and also because of their high cost.
NRG, the parent company of Bluewater Wind, has announced that it’s canceling the power purchase agreement it had reached in 2008 with Delmarva Power.
NRG had been planning to build wind turbines off of Rehoboth Beach, but scrapped those plans earlier this month due to the lack of a financier. Delmarva Power has accepted the cancellation.
Delmarva Power Regional President Gary Stockbridge says in a statement that the company will move forward with land-based solar and wind power projects, as well as working with Bloom Energy, which is setting up its East Coast fuel cell manufacturing plant on the site of the former Chrysler plant in Newark.
The $2 million security that NRG placed during the development of the contract will be credited to Delmarva Power customers.
NRG Cancels Wind Power Contract with Delmarva Power
Utility Continues to Build Renewable Energy Portfolio and Pursue Price Stability
NEWARK, Del. – NRG, the parent company of Bluewater Wind, today notified Delmarva Power it is cancelling the long-term power purchase agreement with Delmarva Power, which the parties signed in 2008 to provide Delaware customers with up to 200 megawatts of offshore wind energy.
Delmarva Power officials accepted the termination, which was allowed under the terms of the agreement, and said they would continue to support the state’s long-term renewable energy goals.
“Delmarva Power and NRG worked hard to see this project come to fruition,” said Gary Stockbridge, Region President for Delmarva Power. “But the inability to secure a financing partner prevents us from moving forward.”
Stockbridge said Delmarva Power has put in place land-based wind projects, solar energy projects and, more recently, supported the state’s effort to bring fuel-cell developer Bloom Energy to Delaware. “We have a very diverse and balanced clean energy portfolio in place and are confident that we will continue to be able to meet the goals that have been set of 25 percent by the year 2025.”
Under the power purchase agreement, Bluewater Wind posted security during the development period of the contract. With the contract having been cancelled prior to Jan. 1, 2012, $2 million of that security will be credited to Delmarva Power customers.