A proposed wind farm off the Delaware coast isn’t dead yet.
Delmarva Power & Light, and NRG Bluewater Wind have reached an agreement to extend by three months the date Bluewater would forfeit a $4 million credit posted under the power purchase agreement.
The original deadline was today.
The new deadline dates are Sept. 23, 2011 for the first $2.75 million and Jan. 1, 2013 for the final $1.25 million.
This agreement recognizes the significant challenges that Bluewater Wind faces, especially the recent withdrawal of the US Department of Energy’s Loan Guarantee authority, while it maintains protection for Delmarva’s customers.
Both companies believe the three-month extension could help Bluewater Wind move the project forward. Bluewater and Delmarva continue to discuss Bluewater’s efforts to urge Congress to restore the DOE Loan Guarantee Authority as well as seek outside financing for the project.
Delmarva and Bluewater signed the power purchase agreement three years ago.
Delaware’s Congressional Delegation, Sens. Tom Carper, Chris Coons and Rep. John Carney (all D-Del.), released the following statement Thursday:
“We welcome today’s announcement that NRG has reached an agreement with Delmarva Power to extend their deadline for an additional three months. We look forward to working closely with NRG, Governor Markell and the Obama Administration over the coming months to ensure that this project continues to move forward and that the federal government does all it can – in the form of loan guarantees and tax incentives – to bring this project to light. We believe we must hasten the day when we can harness the wind energy off our coasts to power millions of flex-fuel, plug-in hybrid vehicles like Fisker’s Karma and Nina that will be built right here in America and in our home state of Delaware. Developing clean, renewable energy in the form of offshore wind in Delaware is a great way to reduce our dependence on foreign oil and promote clean, renewable energy.”