New Projects, Wind

Second PPA for U.S. offshore wind project approved

Cape Wind offshore wind Massachusetts NSTAR National Grid PPA

Photo courtesy of Shutterstock

The Massachusetts Department of Public Utilities (DPU) approved a 15-year power purchase agreement (PPA) with NSTAR to buy the output from the proposed 468 MW Cape Wind offshore wind project off Nantucket Sound.

The PPA is for NSTAR to purchase 27.5 percent of Cape Wind’s output. National Grid signed a PPA for 50 percent of the project’s power in 2011.

“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,” said Cape Wind President Jim Gordon.

Cape Wind is expected to use 130 Siemens (NYSE: SI) wind turbines, each with a 3.6 MW capacity. Construction is scheduled to begin in 2013 and be completed by 2015.

To read the full DPU order, click here.

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