Turbines Of First Offshore Wind Farm In U.S. Ready To Turn

BLOCK ISLAND, R.I. (CBS) -- It's the first ever in the United States and it's right off the New England coast. The nation's first offshore wind farm is about to start generating electricity.

This has been a long time coming. Even though off-shore wind has been a reality in Europe for decades, there have been failed attempts here. But the builders of the Block Island wind farm hope the small project is the start of something big.

Three miles off the coast of Block Island, 5 wind turbines rise out of the ocean, capable of generating enough electricity to power about 17,000 homes. It's a $300-million project, 8 years in the making by a company called Deepwater Wind.

"Deepwater believes that starting small, demonstrating this can be done in the United States, is a very important first step that will launch the industry," says Deepwater Wind's Matthew Morrissey.

The 240 foot blades aren't turning yet as technicians test the systems, but that should happen at the beginning of November. The electricity will go first to Block Island, replacing polluting diesel generators that supply power to the island now, then on to the Rhode Island mainland.

"To be in Block Island and see the turbines near to spinning at the is point is a dream for anyone who cares about clean energy," Morrissey says.

While Block Islanders should save money on electricity, the power that reaches the mainland will be more expensive than fossil fuels, according to Deepwater Wind. But the company says that will change, since the fuel for wind power is free.

"We believe we will see substantial cost decreases over relatively short periods of time which mimic what we have seen occurring in the solar industry and certainly what we have seen occur in the land based wind industry," says Morrissey. And whether that happens will be the real test.

The next phase for off shore wind may be off the Massachusetts coast. Deepwater Wind and 2 other companies are vying to build a much larger wind farm 15 miles off the Martha's Vineyard coast.