Cape Wind Project May Receive Push It Needs

Started in 2001, the Cape Wind project has been in the works for over a decade now. As the nation's first off-shore wind project, it has faced many delays. However, the project may now be one step closer to kicking off thanks to recent support from the federal government.

150 million loan in the works

The Department of Energy has recently announced that it is working toward a 150 million loan that would help get the Cape Wind project going. The Cape Cod Times reports that the potential 150 million would provide the project's developers with over half of the project's estimated 2.6 billion cost.

In general, the DOE has been pushing for an increase in renewable energy projects, loaning billions to various clean energy operations across the country. For example, in an effort to reduce pollutants responsible for global warming while taking advantage of the decreasing cost of solar, Massachusetts' solar installers have constructed several solar farms across the state with the help of loans granted by the DOE. As a result, the number of residents choosing solar for the home and business is steadily increasing, placing Massachusetts high in the country's ranking of environmentally conscious states.

With the potential of producing 360 megawatts of clean energy off the coast of Cape Cod, the DOE sees the Cape Wind project as one that, if completed, could have a major impact on the nation's effort to go green. Cape Wind spokesman Mark Rodgers explains that the announcement of the federal government's support is good not only for the obvious financial support, but the message that it sends to the commercial financing sector.

According to Energy.gov, Secretary Ernest Moniz talks about the vital importance of the recent loans for renewable energy projects. He says, "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 today's announcement of a conditional commitment to the Cape Wind project demonstrates our intent to help build a strong U.S.offshore wind industry."

If the loan is closed, the DOE will be one in the project's group of public and private lenders. However, the DOE will continue monitoring the project and its development and will also continue to work toward reaching a final agreement before it closes the loan guarantee.

Cape Wind benefits

Massachusetts' Governor Deval Patrick is extremely supportive of the project and is pleased with the announcement of the DOE's commitment. Energy.gov reports that he is not only focused on the wind energy project's production of clean energy and the decreasing reliance on fossil fuels, but the fact that it will create approximately 400 construction jobs and 50 operation jobs for residents.

According to the Cape Cod Times, the 130 off-shore wind turbines will produce energy for approximately 200,000 homes, which is three-quarters of the electricity needed to power homes and businesses across the Cape, Nantucket, and Martha's Vineyard. The project is also said to reduce carbon emissions by 73,400 tons - the equivalent of taking 175,000 cars off the road.

Cape Wind conducted a study commissioned by the Charles River Associates that found that the project has the capability of lowering wholesale electric prices across New England by over 7 billion over its lifespan; as electric costs across the country soar, this is a very important incentive.

With the announcement of the possible new loan, Cape Wind is once again on the track to changing the way residents across the region consume energy. As Massachusetts remains one of the nation's leaders in successful renewable energy projects, Cape Wind now has the ability to expand this leadership and pave the road for similar projects to come.

Origin: renewable-energy-events.blogspot.com