UPDATE: Developer of proposed offshore wind farm unable to find a buyer

The developer of a proposed wind farm off the coast of southern Delaware was not able to find a buyer by Tuesday’s deadline.

The parent company of Bluewater Wind, NRG Energy, recently said it was having trouble getting financing for the project.  Delmarva Power agreed in 2008 to enter into a power purchase agreement with Bluewater Wind to buy output from the wind farm as part of its initiative to meet state renewable power mandates.  Supporters have cited the project’s potential to make Delaware a leader in clean, affordable energy, while skeptics have said it would be too costly.  NRG acquired Bluewater Wind in 2009.  The project would have resulted in dozens of wind turbines erected about 13 miles from shore.  The contract for DPL to purchase up to 200 MW (megawatts) of power has been canceled.  

Delmarva Region President Gary Stockbridge said in a statement that the utility and NRG “worked hard to see the project come to fruition, but the inability to secure a financing partner prevents us from moving forward.”

Under the power purchase agreement, Bluewater Wind posted security during the development period of the contract. With the contract having been cancelled prior to Jan. 1, 2012, $2 million of that security will be credited to Delmarva Power customers.  

“We’ve continued to hold discussions with several potential buyers and investors but haven’t yet concluded a deal,” NRG Spokesman David Gaier said in a statement.  “As a result, today we notified Delmarva Power & Light that we’re terminating the 200 MW Power Purchase agreement, effective at year end.”

“We’ll prudently maintain our offshore wind assets—which includes working with the Bureau of Ocean Energy Management (BOEM) on a lease for the Delaware project—and continue to seek a buyer or major investor for that project as well,” Gaier added.