Good Energies, the international renewable energy investor, has announced an investment in the $5 billion Atlantic Wind Connection project in exchange for a 37.5 percent stake in the development phase. The amount invested has not been officially disclosed, although media reports suggest a figure of around $200 million.
Good Energies is part of an investment consortium that has acquired 90 percent of the development phase in total. Google, the internet services giant, has also taken a 37.5 percent stake, while Marubeni Corporation, the Japanese trading company, has 15 percent.
The $5 billion Atlantic Wind Connection (AWC) is a so-called “transmission backbone” project led by Trans-Elect Development Company, an independent transmission business. It will provide approximately 6,000 megawatts of offshore wind capacity, enough power to serve 1.9 million households when fully complete.
The project claims to allow offshore wind projects to be constructed at lower cost, with less impact to the environment. It will deliver power ashore to southern Virginia, Delaware and New Jersey. Initially, it is expected to transport electricity from southern Virginia, where it’s cheap, to the New York City area, where it’s expensive.
“AWC will help bring stability and security to the eastern power grid while enabling the states to meet their renewable energy goals and standards by accessing an untapped large scale local renewable resource—offshore wind,” said John Breckenridge, Managing Director at Good Energies, in a statement.
Construction of the project is expected to begin in 2013, after the necessary permits are obtained and the environmental review process has been completed.