Today is the day Delmarva Power announces that they have signed a deal for on-shore wind. It is priced much less per MWh than that of Bluewater Wind. It will come from a state which borders Delaware, thereby giving us the benefits of clean air.. The facility is currently under construction and should come on line and begin producing power by December of this year, instead of the 2014 date scheduled for Bluewater Wind…….The announcement and the contract should be up on their website, so all can study it.

So exactly how big is the contract? Does it supply as much or more renewable energy as does the Bluewater Wind deal?

Through a mixture of REC’s and direct power purchases, the land based utility will provide around 100 MW of energy to Delaware….This little bit will still provide more than the percentage of renewable energy required by the General Assembly. Later this week, another press conference should announce plans for an additional 170 MWh’s to have been signed by Delmarva, and that both deals are now awaiting PSC approval. Both of these contracts are long term and range from 16 to 20 years……

This can be good news. But onshore wind is too risky to fall upon if we go forward without having an off shore wind farm to back it up…..

Why? Because of the small amount of energy being supplied by these onshore wind farms….The amounts provided are too small to make a dent in your power bill……even though what little is being sold, it is quite cheap….

According to the contract, Bluewater Wind is required to supply 300 Mw every hour of every day for the life of the contract. Normally the Delmarva grid runs about 1000 MWh during all but its peak hours……There are times, particularly late at night, when the entire grid dips below 280 MWhs and still everything is kept running smoothly…..

So now we will do the math. If Bluewater Wind is supplied at $105 dollars per MWh, and the carbon power grid, which can go as high as $1600 dollars per MWh, is running at $155 dollars per MWh, then the combined total we would pay, based on the average of the two, would be paying [3(105) + 7 (155)]/ 10, would give us our price of $140 per MWh. Pictorially it would look something like this.

Bluewater Wind at 300MWh's

That was the Bluewater Plan…..Now here is why Delmarva is trying to use Onshore Wind to block the passage of HCR38 which would order the Bluewater Wind deal to go forward. The are assuming no on will be able to do the math to figure how much they stand to make if we ditch Bluewater in favor of their monopolistic friends……

They bait Delaware with an offer of 100 MWh at $70 dollars per Mwh….As you can see $70 dollars is cheaper than Bluewater’s price of $105 dollars MWh…..But it is only a tiny sliver against a large percentage of very high price carbon fuel fired electricity. So by doing the math, [1($70) + 9($155)] / 10 =  $146.50 per MWh on the average. As you can see the combined totals are cheaper for Bluewater Wind….If you play around with the formulas you will find that around $5 dollars per MWh, the onshore deal provides as much lowering force as does 300 MWh of Bluewater wind. That’s $5 dollars for a full MWh, compared to Bluewater Wind’s $105 and carbons $155 dollars per MWH used to generate power from carbon.

Delmarva's Contract for 100MWh's of Onshore Wind

300 MWH of Bluewater Wind will provide more of a lowering influence against other Carbon fuels, than 100 MWh of cheaper on shore wind…. (Which is why Delmarva wants to buy from land based wind..)

But what if both deals go through…..can that hurt? By doing the math we see that [3 (105) + 1 (70) + 6(155)]/10 = $13.15 MWh of electricity. The combination package will save us more…..But any scenario without Bluewater Wind’s off-shore 300 Mwh driving down the price of coal, gas, and oil, …….will cost us more.
Combined On and Off Shore Wind Proponents