In a statement, the company said: "The Department of Energy (DOE) has notified Cape Wind that our application is not one that can be completely processed by the programme’s September 30 deadline and consequently is ‘on hold’ until further resources can be made available to the programme.
"As a DOE Loan Guarantee would substantially reduce costs to Massachusetts electricity consumers, Cape Wind will continue to pursue the matter."
Cape Wind spokesman Mark Rodgers said Cape Wind Associates may still seek a DOE grant earmarked for innovative technologies. He also said the company may tap the bond market for financing.
Just last month, the US Department of the Interior approved the Cape Wind construction plan. Construction has been slated to begin as early as this year.
The utility National Grid PLC will buy 50% of Cape Wind’s output over the next 15 years. The remainder of the electricity produced has yet to be sold.
Loan guarantees can be substantial. The vast 845MW Shepherds Flat project under construction in Oregon clinched a loan guarantee for 80% of its approximately $1.3 billion in debt financing.