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We should be outraged over the billions of tax dollars of energy subsidies that Congress doles out to mature polluting industries, not over the modest support it gives to renewable power.
-- Frank Gorke, Energy Advocate, MASSPIRG |
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New Study: Cape Wind Will Reduce Regional Electricity Prices by $4.6 Billion
Thursday, February 11, 2010
(Also see Additional Note at bottom)
BOSTON, MA, February 10, 2010 -- Cape Wind will reduce wholesale electric prices for the New England region by $4.6 billion over 25 years, according to a new report published today by Charles River Associates, a leading economic consulting firm.
The report found that Cape Wind will place downward pressure on the wholesale clearing price of electricity by reducing operations of higher priced and polluting fossil fueled units. This will result in average savings of $185 million per year in New England.
“This report makes it very clear, Cape Wind will provide good long term value to electric consumers,” said Cape Wind President Jim Gordon. “By reducing operations of higher priced fossil fuel units, Cape Wind will reduce regional electric prices, reduce pollutant and greenhouse gas emissions while increasing our energy independence,” Gordon added.
The project will also create 600-1,000 clean energy construction jobs and 50 permanent jobs as it becomes America’s first offshore wind farm. Cape Wind has been undergoing a comprehensive review by 17 Federal and State agencies over the past eight years with each succeeding environmental report giving it a very positive review.
“No one knows how high the price of natural gas and oil will go in the next 25 years but we do know that the price of wind will remain zero,” Gordon added. “A barrel of oil skyrocketed to $140 twenty months ago, then went down to $40 and has now almost doubled again, hovering around $75. Natural gas and coal prices have also been volatile which creates a lot of uncertainty in a consumer’s electric bill. Cape Wind will provide significant help for electric consumers by stabilizing energy prices.
The Charles River Associates report is entitled, ‘Analysis of the Impact of Cape Wind on New England Energy Prices’, and was commissioned by Cape Wind.
The full report can be downloaded from Cape Wind’s website by clicking here.
Additional Note: The Charles River Associates report makes it clear that these savings will occur regardless of how Cape Wind sells its electricity, Footnote 1 on Page 1 addresses this issue directly: "1 Power can be purchased through spot markets administered by ISO New England, or though bilateral transactions and forward electricity markets. The power sold from Cape Wind will affect prices in all of these markets, regardless of whether the output is sold under contract or through the spot markets. In fact, all generation, even if under contract, must be scheduled through the ISO New England spot markets. Power that is under contract for physical delivery is simply included at the bottom of the supply stack, therefore directly affecting the spot market. Likewise, expectations about prices in the spot market drive the pricing for forward transactions."
Cape Wind’s proposal to build America’s first offshore wind farm on Horseshoe Shoal would provide most of the electricity used on Cape Cod and the Islands from clean, renewable energy - reducing this region’s need to import oil, coal and gas. Cape Wind will create new jobs, help stabilize electric costs, contribute to a healthier environment, increase energy independence and establish Massachusetts as a leader in offshore wind power. For more information visit www.capewind.org.
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