Dec 17, 2013 - Construction works on the 468-MW Cape Wind project off Massachusetts have started so the scheme has a chance to qualify for the investment tax credit (ITC), Bloomberg said Monday, citing the turbine supplier Siemens (ETR:SIE).
The CEO of Siemens Energy’s wind power unit, Markus Tacke, told Bloomberg by phone he was convinced the scheme would qualify for the US government's ITC before it expires at end-2013. The tax credit covers up to 30% of the capital cost of wind farms, which in Cape Wind’s case is estimated at USD 780 million (EUR 566m). To be able to claim the incentive, projects need to prove they have commenced construction before January 1.
The 130-turbine wind farm in Nantucket Sound, worth USD 2.6 billion, was proposed by US company Energy Management Inc. Cape Wind Associates is a joint venture of Energy Management and First Wind Energy LLC. Although the huge project received the US government's nod in 2010, it has faced delays due to considerable opposition on environmental concerns and difficulties in securing funding. The scheme still has to deal with lawsuits.
Cape Wind has signed power purchase agreements (PPAs) with Nstar, a unit of Northeast Utilities (NYSE:NU), and with UK utility National Grid (LON:NG) in Massachusetts.
(USD 1.0 = EUR 0.726)
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