“This is the beginning of a new era for our Nation in offshore energy production. Responsibly developing this clean, renewable, domestic resource will stimulate investment in cutting-edge technology, create good, solid jobs for American workers, and promote our nation’s competitiveness, security, and prosperity.”
- Interior Department Secretary Ken Salazar
After almost ten years of controversy, Cape Wind Associates, LLC has been granted the first federal lease for offshore wind power generation. The lease covers 25 square miles in Nantucket Sound and will be in effect for 28 years. In return, Cape Wind will pay the government an annual fee of $88,278 plus an operating fee of 2-7% of revenues. Secretary of Interior Ken Salazar announced the lease at a wind energy conference in Atlantic City this morning. So far, no official response from Cape Wind or their perrenial opponents, the Alliance to Protect Nantucket Sound. News coverage so far has also lacked commentary or analysis. Cape Cod Today has a bare-bones summary of the relevant specs. After harping on the expected cost of Cape Wind’s electricity, the Boston Herald produced a blandly neutral piece. The Boston Globe did raise one interesting question, saying it’s still not clear “how the lease payment was arrived at – or how it compares to offshore oil and gas leases.” Still waiting for fellow WCAI-er Sean Corcoran to weigh in on this development on his Cape Wind Blog.