Report: Offshore wind farm may lower wholesale prices by $7.2bn in 25 years

A report from Charles River Associates that was commissioned by Cape Wind said that the offshore wind farm off the coast of Massachusetts will reduce wholesale electric prices for the New England region by $7.2 billion over 25 years.

The report, titled "Update to the Analysis of the Impact of Cape Wind on Lowering New England Energy Prices,” said that ISO New England would first dispatch electric generating units with the lowest cost fuel. Since wind is zero cost, the report said that Cape Wind will displace higher priced fossil fueled units, resulting in an average savings of $286 million per year in New England. The increase in price suppression in the update was attributed primarily to an increase in power plant retirements and a larger price difference between natural gas and oil.

To read the full report, click here (PDF).

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