New hurdle for Cape Wind

Massachusetts energy officials have called on regulators to deny Cape Wind’s request to extend transmission line permits for the developer’s 468MW wind project off the US east coast.

Cape Wind had asked for a two-year extension through 1 May 2017 for the 18 miles of subsea and underground cables.

In a tentative decision released this week, Energy Facilities Siting Board staff advised the board to turn down the request. The Siting Board will consider the recommendation on 6 April, when the parties will be allowed to comment.

Presiding officer James Buckley said the evidence is “overwhelming” that the requested extension is inadequate “given the numerous obstacles presently facing the Cape Wind project”.

Cape Wind lost a pair of power purchase agreements covering 75% of the output after failing to close financing by the end of 2014.

The proponent blames dozens of lawsuits for delaying the offshore project. An appeal is still pending and Buckley noted the “strong possibility” of further legal action.

He also pointed out the project faces an uphill battle in securing a new off-take agreement.

Massachusetts lawmakers are mulling a comprehensive energy bill that would create a carve-out for about 2GW of offshore wind.

The developer would be bidding against Dong Energy and OffshoreMW, which hold commercial leases for a pair of 1GW sites off Martha’s Vineyard.

“Not only must that legislation be enacted, but then a bid process must be developed, conducted and won by Cape Wind,” Buckley said in the decision.

To have any chance of success Cape Wind needs a lengthy, almost open-ended extension period, which “obviously would be unreasonable.”

The developer should re-start the permitting process, he said.

Federal regulators and the New England grid operator already have granted two-year lease and interconnection extensions for Cape Wind.

Image: impression of Cape wind offshore wind farm (Cape Wind)