NRG Energy announced on December 13, 2011 that it was suspending plans to develop a 450MW wind park 13 miles off the coast of Delaware. Bluewater Wind, a subsidiary of NRG Energy, entered a contract with Delmarva Power in 2009 to produce energy from the wind park for over 54,000 homes In Delaware and Maryland. Due to budget cuts, however, the company has been forced to put plans for the wind park on hold.
Budget Cuts
As part of the budget compromise to avoid a government shutdown, Congress cut federal loan guarantees in March. When the United States Department of Energy withdrew the Energy Loan Guarantees, NRG and Bluewater were forced to seek additional investors to complete the project. In addition, federal subsidies are due to expire at the end of this year. Without the governmental subsidies, offshore wind generation becomes significantly more expensive than other forms of energy generation.
Latest Setback
The financial problems for this project were just the latest in a series of setbacks for the offshore wind project. In July, plans to build an underwater power line were voted down, delaying the project. However, Bluewater was in negotiations with Sussex County Council to build an underground transmission line through Bethany Beach.
Delaware was on Track to Become First with Offshore Wind Farm
The news that the Bluewater wind project had been placed on hold indefinitely was disappointing news for the state of Delaware as the completion of the project would have made Delaware the first state with an offshore wind farm. Attempts to build such projects in other states never reached completion due to environmental concerns as well as concerns of residents that the huge wind turbines would be visible from the shoreline.
Delaware residents remain supportive of harnessing wind energy as an alternate energy source. Both NRG Energy and Delmarva Power are hopeful that the suspension of the project is temporary and that additional funding can be allocated to complete the project.
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