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Rhode Island adopts law to re-energize offshore wind project

Europe has been demonstrating offshore wind technology for more than a decade, such as this facility at Blyth, England, completed in December 2000

Rhode Island’s Governor, Donald L Carcieri, has now signed legislation attempting to get the state’s first offshore wind project back on track.

The bill was passed by the state’s lawmakers last week (see this Brighterenergy.org story), requiring a power purchase agreement for the 28MW Block Island Wind Project.

Developed by New Jersey firm Deepwater Wind, the project could yet beat Cape Wind to become America’s first offshore wind farm.

The new legislation “clarifies” the state’s intent to establish the offshore wind project and kickstart a new offshore wind manufacturing and operations industry, after state regulators ruled the project too expensive.

Governor Carcieri said yesterday: “We are setting a new course for renewable energy which will reduce our reliance on foreign oil, protect our environment and grow a new, green industry which will provide thousands of good-paying jobs for our citizens in the years to come.”

PPA

Utility National Grid and Deepwater Wind will now have to file a new power purchase agreement with the Public Utilities Commission, which vetoed the last attempt, which was priced at 24.4 cents per kilowatt-hour. The new PPA is expected to be no higher than the 24.4 cent/kWh level.

The Commission will have 45 days to review the fresh PPA bid, and is expected to call for various testimonies in the review, including views from state officials.

The new approach to the wind farm will require Deepwater Wind to be fully transparent about the costs involved in building the offshore wind farm from the start.

Any cost savings achieved in actually building the wind farm would be expected to pass to Rhode Islanders in the form of lower electricity rates.

Demonstration

Expected to cost upwards of $200 million, the Block Island offshore wind project being proposed by Deepwater Wind is very small compared to the gigawatt-scale offshore wind projects being developed in Europe.

But, the eight turbines to be installed would be a first step to a much larger offshore wind project for Rhode Island. Lawmakers see the expense involved in the demonstration project as an investment for the state to attract an offshore wind industry if Rhode Island can be first movers in offshore wind.

As more, larger offshore wind projects are put in the water, the price of offshore wind energy would come down thanks to economies of scale.

America has not yet installed a single wind turbine offshore, but Rhode Island is up against a number of East Coast states and Great Lakes communities to become the first.

While the thousands of offshore wind turbines operating in Europe have demonstrated the technology to a great extent, the Block Island supporters see their project as important in demonstrating that America can get offshore wind projects through the permitting process and carry out construction and operation activities.

This demonstration project helps to grow the economy, stabilize electricity prices and protect the environment” - Sen V Susan Sosnowski

House Majority Whip and sponsor of the legislation Representative J Patrick O’Neill said: “With this bill, Rhode Island is poised to become a national leader in the manufacturing of wind turbines and clean energy.

“In addition to the many environmental benefits to this legislation, it will also bring countless construction jobs, manufacturing jobs, and green economy jobs to Rhode Island.”

Block Island

The new legislation should also pave the way for an electrical connection from the mainland to Block Island itself, improving the electricity reliability and lowering costs for residents.

Senator V Susan Sosnowski, Chairwoman of the Senate Committee on Environment and Agriculture and sponsor of the bill, said: “This important legislation is good for Block Island, and it is good for Rhode Island.

“It enables Block Island to obtain an electrical connection with the mainland, and facilitates a wind project which will benefit all Rhode Island residents. This demonstration project helps to grow the economy, stabilize electricity prices and protect the environment.”