Wind farms Making The Money.....

The above quote by Gary Stockbridge, President of Delmarva, was carried on the DEL. I find wisdom in that statement.

For wind power to work and be successful……so successful that it spawns copycat wind farms up and down the shores of the United States, the deal must be a “win-win” for all of the parties…..

Delaware is blessed by its location. It is time to reevaluate all options involved, to think outside of the box, and to come up with the silver-bullet solution that makes money for Delmarva, makes money for Bluewater, and saves money for me……It is time we look at all the outside benefits, such as jump starting Delaware’s economy as other states economies are winding down…It is time we look to promote Delaware as a forward thinking state, so those companies interested in investing in our people, come here to stay. It is time we seriously consider the secondary environmental benefits that windmills will provide. It is time we consider the medical benefits that southern Delaware will gain if we can conceivably shut the coal residue bellowing out of Millsboro….

Bottom line, those benefits I mentioned above are nice in a fuzzy sort of way…and I want for them to take effect….But the reality that must occur for this deal to take off across America, is that all parties connected in this deal, must receive a benefit…..No one, including myself, works very hard for a loss………

What we are dealing with is a tricky menage a trois (oo-la-la), between Delmarva, Bluewater Wind, and you……..Everyone gets screwed and no one will get everything they desire, but if each party is dedicated to moving forward, all will benefit……in the nicest way.

Here is how it stands today. Delmarva is worried about its risk and future earnings. Bluewater is worried about having enough of a steady cash flow to meet its financial obligations it takes on to build the wind farm. We are worried about getting electricity without having to sell our children to pay for it.

It sounds tricky. So how can this be done. First some consideration should be given to Delmarva’s acknowledgment that all who benefit from wind power, should chip in to share some of the price…..Some may feel a pinch, but risk is meant to be shared……Ask Matt Denn……that philosophy is the whole underlying reason behind the concept of insurance………..

The public should know who will and who will not be asked to pay more for wind power. It should play a part in exerting enough pressure to make it happen.

Secondly. “The kavips Compromise” should be explored. Although most of you already know it by heart, here it is one more time.

“The obvious choice then, is to go back to their original proposal, a 6ooMW wind farm, allowing them a greater revenue stream, and then have them absorb all of the cost overruns, if any, that occur.”

Bluewater has dropped all escalators from the negotiating process. In return we need to allow them the opportunity to build the largest wind farm feasible, in order to give them the opportunity to drop their costs per unit down close to their original proposal…….They still commit 3oo MW to Delmarva, but reserve the option of selling the extra to the grid at market price.

There is validity in the argument that Delmarva should not be locked down in a price agreement set at 16 cents a Kwh when future technology may allow Bluewater Wind to sell to the PJM, electricity as low as 6.3 cents a Kwh……If such were the case who would stay with Delmarva paying 10 cents more Per Kwh? Surely not I……

A way needs to be explored and found, where even though the deal is set in stone, the price may be renegotiated periodically downward if doing so will benefit any of the customers residing in Delaware. Delmarva will essentially becomes another purchaser of Bluewater’s excess power, as will all the other entities of the PJM…….

Can Delmarva find cheaper power elsewhere? Yes, at first, and that is where the compromise comes in…..WE ALL NEED TO AGREE WE WILL STICK THROUGH IT. That means us, the consumer will also need to accept that…. In return for our loyalty, we the consumer need to understand that we will pay a consistent amount for that energy over a long period of time. It won’t go up in the summer. It won’t go up in the winter…..Consistency….the year around….

Bluewater Wind needs to understand that it will not make tremendous amounts of money, as currently do the gasoline companies of today. Profit gouging is and will be unacceptable….A reasonable price on the other hand, is always acceptable and appreciated. Since we are allowing Bluewater to build on a scale of 600 MW, at a 40% capacity, we can expect an average of 240MW coming offshore from the windfarm……Instead of creating a hybrid concept, co-joining wind and gas, sort of a wedding created by a shotgun, we should just focus on making wind work and allow other sites on the grid to supply the average deficit of 60MW. Since Delmarva is constantly buying energy all the time, this would not be inconvienent…..

Whenever excess wind blows, and power more than 300MW is created offshore, that additional electricity can be sold to utility companies still paying too much for their energy because it comes from fossil fuels. With the future demand for REC’s (Renewable Energy Credits) expected to skyrocket right here in the largest power market in the world, having Bluewater Wind meeting Delawares requirement of 20 % renewable energy, would be advantageous to all involved…..

The point I am making is this. That if negotiated correctly, there is money to be made by all parties, and money to be saved by all Delawareans to boot…….Its a win, win, win situation……For only if all three players benefit, Delmarva, Bluewater, and us, will increased usage of alternative fuels continue to grow up and down the Eastern shore..

For at this late point, only a gigantic switch away from fossil fuels to fuels that are renewable, will have even the tiniest ripple effect upon the Global Warming crises this planet is now undergoing……….

And only if we get offshore wind to work right (ie, make money), here in Delaware, will there be any hope of others hoping to build hundreds more up and down this country’s shores………….