Massachusetts, Rhode Island Make Record Joint Offshore Wind Buy
The Ocean Winds joint venture of France-based companies Engie and EDP Renewables, which was selected to develop major new offshore wind capacity in New England, termed its selection "an important milestone" in growing its U.S. development share.
Image: courtesy of Ocean Winds
In the first multi-state procurement of new offshore wind energy capacity in the U.S., an approach seen as more efficient in a sector struggling to recover from cost gyrations and project cancellations, Massachusetts and Rhode Island said last week they have taken a total of 2.87 GW of offshore wind. It is the largest amount procured in New England to date, and the largest by Massachusetts, which took 2.67 GW of that total.
The procurement moves the state closer to its aggressive target of 5.6 GW of offshore wind by 2027, but the total capacity taken was well below the 6.8 GW offered by the two states and Connecticut. The latter did not procure any new capacity, but did not disclose its reasons.
The outcome represents an intent by Massachusetts Gov. Maura Healey (D) to continue the state push to develop offshore wind despite recent project financial headwinds.
“The bottom line is that Massachusetts needs to generate more power to be able to do what we need to do,” she said at a Sept. 6 press conference. “With our partners in Rhode Island, we are taking an important step toward energy independence, cleaner air and transforming our economy. Simply put, we are going big,” she said.
To fulfill its 2.67 GW, the state chose 1.09 GW of the 1.29-GW SouthCoast Wind capacity, with Rhode Island to take 200 MW from the project. The action revives the project being developed by the Ocean Winds consortium, which was bid in this round at higher energy rates after being cancelled in 2021 and paying a large fine for that halt. Massachusetts also procured the 791-MW New England Wind 1 project, to be developed by Avangrid, and up to 800 MW of the 1.2-GW Vineyard Wind 2 project, with Vineyard Offshore as developer,
But the developer and state now are coping with the continued shutdown of the Vineyard 1 project, with turbine installation mostly halted in July by federal regulators, after a blade collapse on one of its giant Haliade X machines. The projected restart to fully install the project's 62 turbines, and resume power delivery by about 20 now operating has not been disclosed.
Even so. Healey said the state procurement “represents a substantial contribution toward the goal of deploying the first 10 to 15 GW of U.S. offshore wind, which will establish key enabling infrastructure and supply chain investment to support a long-term domestic industry." Lieutenant Gov. Kim Discoll referenced a $300 million offshore wind terminal soon to begin construction in Salem, Mass. and facility expansion in New Bedford, Mass.
New England Wind 1 will provide $130 million in upfront and lease payments to advance development of the offshore wind port in Salem and “locate an operations and locate an operations and maintenance hub in New Bedford,” the state said.
Selected projects will use union project labor agreements and occupy those port assembly sites and others in Providence, R.I and New London, Conn., Healey said.
South Coast Wind, located 23 miles offshore of Nantucket, is set to start construction in late 2025 with delivery to the regional electric grid by 2030, its developer said, although still awaiting federal environmental approval and finalized agreements with utilities on long-term power sale contracts. The project includes plans to revitalize Brayton Point, a former 1.5-GW coal-fired power plant on Massachusetts’ south coast, as its grid connection.
The selection is an "important milestone for Ocean Winds as we continue to strengthen our activities in the United States.” said CEO Craig Windram. The developer is a global joint venture of EDP Renewables and ENGIE, both based in France.
