Cape Wind, the huge offshore wind farm that recently won federal permission to build near Cape Cod, Mass., announced on Friday that it had signed a deal to sell half the project’s output to National Grid, a New England utility, for a price beginning at 20.7 cents a kilowatt-hour.
The initial 20.7 cents/KwH price increases by 3.5% annually, for 15 years. That assumes the monster bird shredders won’t sink before then.
The price and annual increase is a great deal for the green energy sector, less so for the consumers that have to buy it. The current price for electricity in Massachussetts is only 9 cents/KwH.
And as one ecotard is discovering, wind isn’t all it’s cracked up to be.
Welcome to the alternative energy future: unreliable, intermittent power at more than twice the price of traditional generation.
What could possibly be wrong with that?