This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

First U.S. Offshore Wind Project Gets Nod

NEW YORK (TheStreet) -- The first offshore wind power project in the U.S. received a key approval from the state of Massachusetts on Monday.

Cape Wind received approval from the Massachusetts Department of Public Utilities to sign a 15-year Power Purchase Agreement with U.K.-based National Grid. National Grid will be buying Cape Wind's energy, capacity and renewable energy credits under the terms of the PPA.

It's been a nine-year battle for Cape Wind against the political establishment in Massachusetts and elite elements of Martha' Vineyard, including the Kennedy clan. Cape Wind president Jim Gordon said in a statement on Monday afternoon, "Today's approval validates that Cape Wind is a good value delivering clean energy without all of the associated costs of fossil fuels. This long-term contract not only secures an abundant, inexhaustible clean energy resource but protects consumers from rising fossil fuel and environmental compliance costs."

Cape Wind and National Grid announced their intention to sign the PPA in May.

The U.S. terrestrial wind market has had one of its worst years on record in 2010, with companies like Broadwind Energy (BWEN) seeing their stock value dive and once-heralded initial public offering candidates like First Wind find the market conditions to be choppy. Meanwhile, U.S. companies with a focus on selling into overseas wind power markets, have fared better, such as American Superconductor (AMSC), which sells wind equipment to Asian wind market companies.


Rate-payer organizations concerned about the costs being passed on to the customers of electricity, and environmental lobbies, have made it difficult for wind power projects to secure the necessary approvals.

Meanwhile, the European offshore wind market has become a focus for sellers of wind turbines and other wind power equipment, including big industrial players like General Electric (GE) setting their sights on the U.K. opportunity.




The European wind market is not without issues overall, though. On Monday, European wind market giant Vestas announced guidance for 2011 that expects no profit growth year over year. It was a surprise as Vestas announced in October it was laying off 3,000 workers and closing factories in Denmark and Sweden. Declining demand, tight credit, and the Euro zone debt crisis providing a weak macroeconomic backdrop for its business are all factors in the Vestas outlook.

Siemens (SI) has opened its North American Offshore Wind office in Boston because of Cape Wind, the company said in its statement announcing the regulatory approval. Earlier this fall, Google (GOOG) announced an ambitious plan to fund the development of an offshore wind power electricity transmission system.


Last month,GE and Siemens were among the companies saying they would invest $629 million in the U.K.'s offshore wind sector after the British government assured the companies of threatened port funding that deals directly with the issue of wind power infrastructure.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs