Offshore Wind Farm to be Built off the Coast of Delaware

Delmarva Power and Bluewater Wind announced an agreement today on a long-term power purchase contract under which Delmarva Power would buy up to 200 megawatts of power from an offshore wind farm of 150 wind turbines to be developed by Bluewater Wind. The agreement includes energy, capacity and renewable energy credits.

Delmarva says that it is confident that they will meet the aggressive renewable energy goals established by Delaware in 2007. Under the state’s renewable energy goals, Delmarva Power must ensure that 20 percent of its electricity supply comes from renewable sources by the year 2019.

“We’re comfortable that, through these wind power contracts, we will fulfill our responsibility to provide customers with affordable energy in a way that helps protect and preserve the environment,” Stockbridge added. 

Bluewater Wind believes this agreement is a significant step toward developing Delaware’s first offshore wind farm, which will almost certainly be the first offshore wind farm in the United States. This offshore wind farm is expected to bring clean energy, new jobs, and stable rates to Delmarva Power customers.

Under the 25-year agreement, Bluewater Wind, the state-selected offshore wind provider, could begin delivering electricity to Delmarva Power’s Delaware customers around the year 2012. Delmarva Power’s customers would buy about half the amount of electricity at a lower overall price per megawatt-hour.

In addition to the contract to buy a percentage of the output of the wind farm, Delmarva Power also has agreed, but still subject to state approval, to implement an optional program that would give Delmarva Power customers the choice to purchase additional offshore wind power.

The costs and benefits of the new contract are expected to be spread among all Delmarva Power customers in Delaware. The monthly price impact upon Delmarva Power’s typical residential standard offer service customers is expected to be reduced from about $20 to about $3.50 per month under the new agreement because of the lower negotiated price, smaller amount, and by spreading it across a larger customer base.