Energy Generation, Energy Transmission (Oil, Gas, Power)
Design / Construction
28 year lease executed by the US Department of the Interior with Cape Wind Associates, LLC, the first wind farm in US waters. The concession allows the developer to install 130 wind turbines over 25 square miles of water about 5 miles of the southern coast of Cape Cod, in an area known as Horseshoe Shoal. The project will generate (on average) enough electricy to power 200,000 homes, or up to 420 MW of clean, renewable energy. The project includes a 12.5 long submarine cable system from the wind farm to the landfall location in Yarmouth.
Delivery Method as described in the country where it's located:
Is the project still active:
The lease requires Cape Wind Associates to pay $88,278 a year in rent, plus, once electricity begins to flow, an additional 2 to 7 % of revenue as an operating fee based power sales. The MA Final Envir Impact Report indicates this additional payment is expected to be between $200k and $300k per year.
United States of America
United States of America
Souces of Project Support (Non-monetary)
Access to Land: Access to 25 square miles of federal owned and managed coastal waters and seabed. The wind turbines will be arrayed in a grid pattern of parallel rows. Within a row, the wind turbines will be .34 nautical miles apart (about 6 football fields), the rows will be .54 nautical miles apart (about 9 football fields). The towers, from the surface of the water to the center of the blades, will be 258 feet tall. The lowest blade tip height will be 75 feet above the surface of the water and the highest blade tip height will be 440 feet above the surface of the water. The base of the wind turbine towers will be 16 feet in diameter. Each wind turbine will be mounted to a single monopole foundation which is a hollow steel pipe that will be driven 80 feet into the sandy seabed.
Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): Sponsor is US Department of Interior, through the Minerals Management Service (MMS), which signed a 28 year lease permitting Cape Wind to install the facility and authorizing it to sell generated power to the electricity grid. Cape Wind will be rated to produce up to 468 megawatts of wind power as each wind turbine will produce up to 3.6 megawatts. Maximum expected production will be 454 megawatts. Average expected production will be 170 megawatts which is almost 75% of the 230 megawatt average electricity demand for Cape Cod and the Islands of Martha’s Vineyard and Nantucket. On November 22, 2010, the Commonwealth of Massachusetts approved the power purchase agreement between Cape Wind Associates and National Grid, which provides for the reception of generated electricity into the regional grid.
Environmental Clearance: Final project approval by US Department of Interior, through the Minerals Management Service (MMS), with execution of the lease on October 6, 2010. Prior environmental review and permitting under the National Environmental Policy Act and the Mass. Environmental Policy Act. Other federal approvals came from the Federal Aviation Administration and the Corps of Engineers.
Souces of Project Support (Monetary)
From Private Capital Markets Directly to Producers as Debt: Split between equity and debt not disclosed.
From Producers as Equity
Project Delivery & Finance Method
All Public Finance. Public Sponsor contracts for initial design, and separately contracts for initial construction. Public Owner operates and maintains the resulting facility.
Is there an independent checking engineer? Yes
Project Finance Method: All By Private Sponsor
Qualifications Based Selection
Request for Qualifications
Request for Proposals
Invitation for Bids
Term for Key Components & Forms of Contract
Combined Term: Initial Design, Construction, O&M Period
Mandatory Statutory Form
MMS lease format -- negotiated between developer and Materials Management Service of the US Depart. of the Interior.