Cape Wind Suspended from New England Market, Loses Two Land Deals
- Business & Finance
What was set out to be the US first offshore wind farm raised more doubt in the last week.
The 468-MW Cape Wind project off the coast of Massachusetts has been suspended from participating in New England’s wholesale electricity markets by ISO New England.
A New England ISO spokeswoman said: “In general, suspensions are a result of a participant not maintaining a minimum amount of collateral and/or not complying with other financial assurance or billing requirements.”
However, Cape Wind was not worried about this decision as spokesman said they would be “qualified well in advance of coming online and actually producing energy for sale.”
In addition, the company developing this project has lost two land and facility purchase contracts.
Cape Wind has stopped making payments for the 14-acre lease agreement with Quonset Development Corp. According to the landowner, the company paid USD 10,000 deposit for the land and a total of USD 19,200 in monthly fees since September to maintain the agreement.
Cape Wind noted they will not need this land now that New Bedford site has been completed.
Additionally, Cape Wind has also let purchase-and-sale agreement for 3-acre marine in Falmouth expire according to Boston Globe.