Cape Wind, the proposed $2.6 billion wind farm off the coast of Massachusetts criticized by local residents, including the Kennedy family, will qualify for a key federal tax credit that expires at the end of the year, according to its turbine supplier Siemens AG, Bloomberg News reported last week.
Construction of some components has already begun, meeting the requirements for the investment tax credit, said Markus Tacke, CEO of Siemens Energy’s wind-power division.
The project has been in the works for 12 years, and has faced opposition from fishermen, American Indian groups and the Kennedy family, whose compound of homes overlooks Nantucket Sound. It would become the first U.S. offshore wind farm if built.
Wind projects, including the 468-megawatt Cape Wind proposed for Nantucket Sound, must begin construction by Jan. 1 to qualify for the investment tax credit or the production tax credit.
Cape Wind is considered to be in an informal race to construct the nation’s first offshore wind farm with Providence-based Deepwater Wind, which is planning a five-turbine wind farm to be located 3 miles southeast of Block Island. •