Deepwater Wind's plans for first US offshore wind farm set sail

Deepwater Wind, a privately-held US offshore wind energy firm, announced late last week that its plans to build the first US offshore wind farm have taken a major step forward after the company signed a 20-year deal to sell power from the first phase of a Rhode Island project.

Under the terms of the power purchase agreement, which is still to be approved by the Rhode Island Public Utilities Commission, Deepwater will generate and sell power from up to eight turbines producing 28MW to grid operator National Grid at a price of 24.4 cents per kilowatt hour.

The deal provides a major boost to the flagship project, which when completed is expected to supply up to 15 per cent of Rhose Island's electricity needs.

The company said that it remains committed to expanding the project to eventually build a 500MW facility encompassing a series of wind farms along the coastline from Maryland to Maine.

A number of factors have previously conspired to prevent offshore wind projects in the US, including a lack of infrastructure, coastal community resistance, and a limited number of suitable locations with water depths of between 80ft and 100ft. In addition, the rapid growth of the US onshore wind energy industry has discouraged investment in more costly offshore projects.

However, Deepwater claims to have significantly increased the number of locations it can target, by developing a new "jacket" foundation technology that allows wind turbines to be deployed in water depths of up to 150ft.

In related news, the continuing strength of the North American wind energy market was underlined last week when GE Energy Financial Services and Plutonic Power Corporation announced they have completed their purchase of British Columbia's largest wind farm, the 300MW Dokie Wind Project.

The companies said they had shelled out C$52.5m (£49.7m, £30.4m) to purchase the fully permitted project and will now begin construction at the site next month. They said that the first phase of the project is expected to provide 144MW of capacity and will begin commercial operation by early 2011.