Dive Brief:

• In a move bringing Burlington Electric Department closer to its goal of getting all its electricity from renewable sources, the municipal utility will buy wind power from a wind farm to be built in Maine by First Wind.
• When the 10-year, 13.5-MW contract takes effect, Burlington Electric will get 92% of its power from renewable sources. Burlington Electric expects to hit its 100% renewables goal by buying a hydroelectric facility.
• The Vermont-based muni expects the wind contract to reduce its power supply costs, according to a presentation to the Burlington City Council.

Dive Insight:

If renewable energy credit prices remain “anywhere near where they are today the contract is actually cheaper than other non-renewable alternatives,” utility staff told the Burlington City Council. This is another example of wind prices falling below fossil-fueled alternatives.

However, Burlington Electric also entered into the fixed-price deal because it locks in their supply costs, reducing the utility's exposure to electric price hikes. In another benefit to Burlington Electric, First Wind will take all the risk in delivering power from the 54-MW wind farm near Ellsworth, Maine, to Vermont. The utility has an option to extend the contract by 15 years.