NRG Energy's Wind farm set to move forward

Federal waters off Delaware are officially open to bidders seeking to lease parts of the Outer Continental Shelf. That means NRG Energy’s Bluewater Wind wind offshore farm is a big step closer to completion.

NRG Energy spokesman David Gaier said, “We feel that we are very far along in the game as far as the Mid-Atlantic Wind Park is concerned.” He said the company already has in hand a power-purchase agreement with Delmarva Power for 200 megawatts of energy, an agreement to deliver wind power to the regional electric grid and a lease to install a meteorological tower for studies.

Gaier said the company plans to have turbines generating power by 2014.

Gaier said NRG is reviewing the application from the Minerals Management Service (MMS), which is part of the interior department. “This action by the Department of the Interior formally opens the permitting process for us,” said Gaier. This is the first-ever offshore wind permit process, said Gaier, so the company can’t estimate how long it will take. But, he said, the company expects to meet its deadlines.

Gov. Jack Markell said, “Delawareans are eager to seize the economic and environmental benefits of offshore wind and we are proud to be the first state in which MMS will issue an Offshore Wind Request for Interest.”

Gaier said the company would also have to complete environmental-impact studies, including the effects of the planned park on migratory birds.

“We believe, based on other studies and from long-term experience in Europe, there will be no negative impact on birds. In fact, one of the first organizations to support us in Delaware was Delaware Audubon,” said Gaier.

NRG Energy purchased Bluewater Wind from Australian-based Babcock and Brown in November 2009 after Babcock and Brown had financial problems and went into voluntary administration, selling off its assets. In 2008, Bluewater Wind and Delmarva Power signed a power-purchase agreement after more than a year of contentious negotiation. MMS said if there is no competitive interest, the agency says it may proceed with a noncompetitive lease process. Both options will include public participation and environmental review, the agency said.

The Department of the Interior announced last week the first step in allowing a wind farm project off Rehoboth Beach. Interior secretary Ken Salazar said federal and Delaware officials have been working closely on the project. The Minerals Management Service governs continental shelf leases.

The Request for Interest includes federal waters between Delaware Bay shipping routes. The point closest to land is 7.5 miles due east of Rehoboth Beach.

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