May 14 2010
Cape Wind and National Grid are likely to sign an agreement with the Massachusetts Department of Public Utilities under which clean energy will be purchased by National Grid from an offshore, large-scale wind farm that is likely to commence operations by late 2012. As per the Green Communities Act, every investor-owned utility in the Commonwealth is supposed to establish agreements for purchasing a minimum of 3% of their electrical energy needs from renewable producers.
The President of National Grid Tom King commented that this project will bring long-term environmental and economic benefits to New England and the Bay State. Moreover, domestically produced renewable energy sources are necessary to meet the federal and state renewable goals.
As per the agreement, National Grid will buy 50% of the output of the wind farm from Cape Wind including renewable energy certificates (RECs), electricity as well as other potential market features for 20.7 cents per kWh starting from 2013. Based on the estimates of National Grid of what customers are likely to pay for electrical energy in 2013, the company predicts that this will translate into a total bill increase of $1.59 per month for a customer who utilizes 500 kWh monthly.
Moreover, one more contract is also likely to be signed which will enable the rest of the 50% output of the farm to be bought by one or more parties.
Source: http://www.nationalgrid.com/