FAA upholds Cape Wind approval

US: Cape Wind's 420MW projected wind farm for Nantucket Sound has taken another step towards construction with the Federal Aviation Administration's (FAA) decision to uphold the 'No hazard' ruling it made in May.

Cape Wind's meteological tower: the first, and only, US offshore construction

The decision derails an appeal by the Alliance to Protect Nantucket Sound against the initial ruling. The group says alterations to flight paths to accommodate Cape Wind cause safety and environmental issues near Nantucket Sound.

When the FAA passed the ruling in May for the proposed 130-turbine project in Nantucket Sound there were a number of financial provisos involving Cape Wind funding updates to radar technology in the area.

This involved $1.5 million for a radar modification. In addition, the FAA also required Cape Wind to put $15 million aside for two years to pay for a new digital radar system if the modification failed to alleviate any issues resulting from the wind farm.

The FAA’s decision follows a deal between the Massachusetts attorney general, Cape Wind and power purchaser National Grid over the wind farm’s PPA.

In an agreement with attorney general Martha Coakley, Cape Wind and National Grid have agreed to lower the price from $0.207 to $0.187 per kWh, effectively a reduction of 10%.