April 28, 2014 — There are good reasons why Cape Wind has struggled to get off the ground for the past 13 years. Not only is the project outdated, but its location in the heart of Nantucket Sound has now been determined to pose significant risks to a variety of endangered and threatened species.
These environmental impacts are the basis of a recent federal court decision that sent both the U.S. Fish and Wildlife Service and the National Marine Fisheries Service back to the drawing board to conduct more scientific reviews.
But Cape Wind’s impacts extend far beyond the environment. The controversial project would also jeopardize public safety, put fishermen’s livelihoods at risk and desecrate sacred tribal lands. As a result of these impacts and the choice of a highly conflicted location, Cape Wind continues to face litigation and opposition.
Likely the single biggest reason Cape Wind is no closer to being built today than it was 13 years ago is simple economics: Its cost is exorbitantly high. Any electricity Cape Wind would produce is guaranteed to be some of the most expensive in New England and the nation.
Cape Wind’s contracted electricity prices start at roughly 20 cents per kilowatt hour (kwh) and would increase by 3.5 percent each year to reach an exorbitant 34 cents per kwh in the final contract year. To put these numbers in perspective: Cape Wind would cost $3 billion more than electricity bought at market rates. It would also be more than three times as expensive as competing land-based wind projects that sell electricity at a flat 8 cents per kwh — with no annual increase. Cape Wind’s high rates would burden families, businesses and communities all throughout the commonwealth.