Massachusetts Poised to Target More Offshore Wind

LCG, August 2, 2018--The Massachusetts Legislature approved H4857, An Act to Advance Clean Energy, on Tuesday that includes: an increase in the Massachusetts Renewable Portfolio Standards (RPS) goals to 35 percent by 2030, a 1,000 MW energy storage goal by 2025, and a path to install an additional 1,600 MW of offshore wind capacity. With the current goal of installing 1,600 MW of offshore wind capacity, the total offshore wind capacity would be 3,200 MW. The legislation will now be received by the Governor of Massachusetts.

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Pattern Development Completes Power Purchase Agreements for 200 MW Wind Project in New Mexico

LCG, August 1, 2018--Pattern Energy Group 2 LP (Pattern Development) yesterday announced it has signed 15-year power purchase agreements (PPAs) with Silicon Valley Clean Energy (SVCE) and Monterey Bay Community Power (MBCP) to deliver wind power from the 200 MW Duran Mesa Wind project currently in development near Corona, New Mexico. SVCE has signed a PPA for 110 MW, and MBCP has signed a PPA for 90 MW.

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Industry News

Enron India Not Planning to Sell Dabhol 'Right Now'

LCG, May 2, 2001U.S. energy giant Enron Corp., mired in financial disputes with the federal government of India, the government of the Indian state of Maharashtra, and the Maharashtra State Electricity Board, has no immediate plans to sell its interest in the Dabhol Power Project, the company's chairman said yesterday.

"We're not in any discussion right now on selling the plant," Enron Chairman Kenneth Lay told reporters after the company's annual meeting. Enron and financial institutions that provided backing for the Dabhol project met in London last month to discuss courses of action open to them following attempts by India, Maharashtra and the MSEB to unilaterally modify agreements reached in the mid-1990s.

"The lenders have sent the government of India a letter indicating the various things both the government of Maharashtra and the government of India need to do to come back into compliance with the contract," Lay said.

Under agreements reached in 1993 and 1995, the MSEB is to purchase all the power from a 740 megawatt first phase and a 1,444 megawatt second phase of the Dabhol project. The first phase has been producing power since last summer and Enron has been forced to invoke guarantees by Maharashtra state and the federal government of India to be paid for each month's bill.

The MSEB is currently $48 million behind on its electric bill and last month adopted a creative new strategy to meet its obligation. The state-run utility fined Enron something like $200 million for alleged failures to perform and then instructed the U.S. company to simply deduct the electric bill from the fine.

The 1,444 megawatt second phase of Dabhol is schedule for completion later this year, and now the MSEB says the power in not needed. Lay said the second phase could be delayed if the MSEB doesn't pay its electric bill. "The construction activity is being scaled down, so it is impacting operations, but its still not too late to stop any damage from that if the governments step up and honor the contracts," he said.

The Dabhol project represents the largest foreign investment in India, and India has made no secret of its desire to attract foreign money to assist in development of its infrastructure. But four U.S. power firms have pulled out of Indian projects already and failure of the Dabhol project would be a sever setback for the subcontinent in its efforts to finally take part in the industrial revolution.

"It sends a very bad signal to the rest of the world as to the difficulties of investing in India, which isnot what India needs right now," Lay said.

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