Cape Wind Case Analysis

Cape Wind

Case Analysis

BSAD 153: Consumer Behavior

November 21, 2014

Professor. Bonifield

Delco Song

1. Issue Identification

Cape Wind Associates invested $600 million which was in order to develop a wind farm located in Nantucket Sound off the Massachusetts coast during the summer of 2003. The proposed wind farm was consisted by 130 towers which were slightly over 400 feet tall for each one and located roughly 5.5 miles off the coast. Based on the Cape Wind prediction, 1.5 million megawatt-hours per year would be produced by this wind farm after operation which means this electricity would satisfy the mainly electricity demands of 75% of the roughly 200,000 homes on Cape Cod.

In addition, this kind of wind energy had so many advantages such as pollution free, renewable and a reduced dependence on Middle East oil. However, this project still met the huge obstruction by intense scrutiny by local residents and environmentalists. People were worried about the wind farm will make the potential impact of the windmills on migrating birds, fish and shellfish, and tourism which is the region’s primary industry of income. Cape Wind were facing following major issues before the operation of the wind farm: the hidden troubles that Cape Wind needs to consider and make in its efforts to develop a wind farm in Nantucket Sound. And also what kind of actions could Cape Wind have done differently to increase the likelihood of public and government approval. Moreover, what is the future plan of wind power development in the United States.

Problem Analysis

The main reason causes wind farm cannot finish their operation successfully is the objection from local residents and environmentalists. People contradict wind farm is that they did not clearly understand the benefit and advantage of wind energy which was a new kind of technological energy at that time. As the result, the residents did not familiar with this “strange” industry. The first mistake made by Cape Wind is they did not make the specific introduction of the wind energy before they invest the wind farm in Nantucket.

Moreover, the main point that environmentalists deny this project that it will harm passing birds and wildlife habitat. However, all of the relevant evidence that it been able to ascertain from the European models that have been operating for up to 10 years according to the exhibit 1 from the case which indicated that there is no significant threat to seabirds from the offshore towers. Wind energy system development in Europe is mature and widespread which is the persuasive experience and example. Actually, the environmental impact of wind power has more advantages than disadvantages as the absolutely clean energy though the towers would affect part of the environment. For instance, the wind farm can eliminate 4,642 tons of sulfur dioxide, 120 tons of carbon monoxide, 1,566 tons of nitrous oxides which means it could make the replacement of 113 million gallons of fuel oil per year by using this technology. In addition, wind energy system could effectively decrease a million tons of greenhouse gases and 448 tons of particulates from being dumped into the air. The advantages of wind energy are definitely more than the disadvantage. So environmentalists should not become the barrier of the wind farm.

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