DOE conditionally commits to U.S. offshore wind industry

July 2, 2014 | By

The U.S. Department of Energy (DOE) is getting closer to issuing a $150 million loan guarantee to support the construction of the Cape Wind offshore wind project with a conditional commitment to Cape Wind Associates, LLC.  With this agreement, Cape Wind is closer to completing its financing and commencing construction on what would be the first commercial-scale offshore wind facility in the U.S. -- with a capacity of more than 360 MW of clean energy.

Click on image to enlarge. Credit: energy.gov

The Cape Wind project would use 3.6 MW offshore wind turbines that would provide a majority (up to 75 percent) of the electricity needed for Cape Cod, Nantucket and Martha's Vineyard, and would create permanent jobs.

Under the proposed financing structure for the Cape Wind project, the DOE would be part of a group of public and private lenders. This co-lending arrangement will help build private sector experience with offshore wind projects in the U.S. while reducing taxpayer exposure. The DOE will continue to monitor the project's development and work to reach final agreement before closing the loan guarantee.

Currently, the department's Loan Programs Office (LPO) supports a diverse portfolio of more than $30 billion in loans, loan guarantees, and commitments -- supporting more than 30 closed and committed projects. The projects include one of the world's largest wind farms; several of the world's largest solar generation and thermal energy storage systems; and more than a dozen new or retooled auto manufacturing plants across the country.

"In just the last year, eight projects in the department's Loan Programs Office have become fully operational, including one of the world's largest operating photovoltaic solar power plants, the world's largest concentrating solar power plant, and a vital Western transmission line," said Secretary Ernest Moniz in a statement. "These innovative projects are delivering clean, renewable energy for American consumers today and are helping to diversify our energy portfolio. The department's loan guarantees have assisted the launch of new industries in the U.S., and a conditional commitment to the Cape Wind project demonstrates our intent to help build a strong U.S. offshore wind industry."

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