Rhode Island awards $1 billion offshore wind energy contract

Governor Donald L. Carcieri announced that Deepwater Wind, a NJ based firm won the contract to develop offshore wind farm in Rhode Island. According to Governors press release, the "wind energy project off the shores of Rhode Island will provide 1.3 million megawatt hours per year of renewable energy – 15 percent of all electricity used in the state. It is expected that the project will cost in excess of $1 billion to construct – all from private investment sources."

It is interesting to note that the funds for this project comes from private equity without any burden on the tax payers. In addition, Reuters reports that "Deepwater pledged to make a significant investment in the state of about $1.5 billion with the construction of a regional manufacturing facility in Quonset and creating up to 800 direct jobs with annual wages of $60 million."

Renewable energy is gaining high popularity in recent years. Chron.com reports that the House passed a $60 billion tax package designed to spur investment in renewable energy. During the first Presidential debate, Obama claimed investment in renewable energy as a high priority to rid dependence on foreign oil.

Cape Wind, America's first offshore wind farm to be constructed in Nantucket Sound will provide electricity to three quarters of Cape Cod. Opponents of Cape Wind claim environmental and public safety impacts from the project. The six major concerns expressed by the Alliance to protect Nantucket Sound can be accessed by clicking here.

Maryland, Delaware, New Jersey, and New York have all expressed interest in offshore wind projects. State-by-state summary of offshore wind proposals can be accessed by clicking here.