The Delaware Public Service Commission and three other state agencies unanimously approved a power-sharing agreement Thursday that could help the nation's first offshore wind farm get built off the coast of Delaware.

In June, Delmarva Power, a subsidiary of Maryland-based Pepco Holdings Inc., agreed to a 25-year deal to buy up to 200 megawatts of power from an offshore wind farm to be built by Bluewater Wind LLC 11.7 miles east of Rehoboth Beach.

The agreement came after many months of the two firms squabbling over the cost of the project to Delmarva's customers.

The wind farm will sit just miles from the Maryland border. Representatives of Bluewater approached the Town Council in Ocean City in July about building 25-foot turbines there.

Gov. Martin O'Malley acknowledged Wednesday that the project, as proposed, is entirely within the purview of the state of Delaware. Still, O'Malley said he'd like to find out if there are some "economies of scale," that could help Maryland get involved with the project in a cost-effective way.

"I think it's an excellent project," O'Malley said of the Delaware proposal. "I'd like to see us be a part of it."

Maryland has struggled to get wind projects developed in the state for several years. Earlier this year, O'Malley ruled out erecting turbines on public land, but he has otherwise been a strong supporter of building turbines where the alternative energy source could be the most beneficial.

Bluewater will need to make additional agreements with other electricity providers in order to get its 600-megawatt project built. One megawatt equals 1 million watts and generally provides enough electricity to supply approximately 1,000 homes.

Bridget Shelton, a Delmarva spokeswoman, said the company has little to do but wait for Bluewater to build its turbines.

"We signed this contract, and once Bluewater's offshore wind park gets built, we start receiving energy the year it comes online," she said.

Frank Maisano, a spokesman for wind developers in the mid- Atlantic, including Bluewater, said project approval is important to the surrounding states and the wind industry.

"We've got limited resources in the mid-Atlantic when it comes to wind," Maisano said. "We've gotten pushback from residents of the areas that could house these projects. One of the things that they say all the time while gumming up the projects is, 'Why don't you build them offshore?' Well, now we are."

Originally published by Danielle Ulman.

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Story Source: The Daily Record (Baltimore)