Analysis of the Impact of Cape Wind on New England Energy Prices

Analysis of the Impact of Cape Wind on New England Energy Prices

Energy

Charles River Associates conducted an analysis of the impact of the Cape Wind project on the ISO New England wholesale electricity market. Cape Wind, a 468 MW offshore wind power project planned for Nantucket Sound, is expected to provide enough power to supply approximately 10 percent of projected 2013 demand in Southeastern Massachusetts and just over 1 percent of total projected 2013 New England demand. This additional supply will reduce the need for generation from other power plants with higher pollutant emissions and operating costs, primarily fueled by natural gas, oil, and coal. CRA has projected wholesale power prices over the period 2013-2037, for scenarios with and without Cape Wind in service, and quantified the expected reduction in wholesale power prices and wholesale electricity costs that would result from the power supplied by the project.

Download PDF