First ever US multistate offshore wind tender hands 3GW to Iberdrola, CIP and Ocean Winds
Developers to advance major projects but round falls short of 6.8GW on offer, while Connecticut decides to delay
Massachusetts and Rhode Island announced joint procurement of 2.87GW of offshore wind capacity in the US’ first multistate round and the largest ever in New England.
Massachusetts will take the lion’s share at 2.67GW, leaving Rhode Island with only 200MW while the third party to the tristate procurement, Connecticut, is so far a no-show.
“Today we are proud to announce that, along with our partners in Rhode Island, we are taking an important step towards energy independence, cleaner air and transforming our economy. Simply put, we are going big,” said governor Maura Healey.
“This selection is New England's and Massachusetts’ largest offshore wind selection to date. We'll power 1.4 million more Massachusetts homes with clean, renewable energy, create thousands of good, union jobs, and generate billions of dollars in economic activity. The world will look to New England for the future of clean energy,” Healey added.
Rhode Island governor Dan McKee said: “Today marks a historic milestone for Rhode Island and Massachusetts as we join forces to drive the largest offshore wind procurement in New England's history.
“With this project, Rhode Island is taking a significant step forward in meeting our Act on Climate goals and building a clean energy economy that benefits all Rhode Islanders.”
Ocean Winds’ Southcoast project was redeemed in the round, with all 1.2GW of capacity previously contracted to Massachusetts, but cancelled due to inflationary and financing headwinds, revived in the latest round. Massachusetts will take 1.09GW, while Rhode Island was awarded 200MW. of Southcoast capacity.
“Today marks a pivotal moment for New England’s energy future, one where offshore wind will help meet Massachusetts’ and Rhode Island’s ambitious climate goals and the increasing demand for electricity. It is also an important milestone for Ocean Winds as we continue to strengthen our activities in the United States.” said Craig Windram, CEO for Ocean Winds.
Iberdrola’s US subsidiary Avangrid's New England Wind 1 was awarded 791MW by Massachusetts, partial redemption following cancellation of 1.2GW of capacity likewise withdrawn last year.
“New England Wind 1 is positioned to deliver an urgent energy, climate, and economic solution to Massachusetts, and we look forward to working with the Commonwealth, Tribal Nations, organised labor, and our community partners moving forward,” said Avangrid CEO Pedro Azagra.
Copenhagen Infrastructure Partners (CIP) meanwhile extended its winning streak in the US with its 800MW Vineyard 2 project to Massachusetts.
“The offshore wind solicitation awards by Massachusetts and Rhode Island demonstrate the New England states’ strong commitment to this new, clean source of electricity, and mark the first time that states have worked together on awarding offshore wind power contracts,” said Anne Reynolds, vice president of offshore wind for industry group American Clean Power Association.
While touted as the largest single procurement in New England history, the round falls short of 6.8GW on offer.
Connecticut meanwhile declined to procure any projects at this time.
“The evaluation of project bids remains underway in Connecticut, and we will announce a final decision in our solicitation at a future date,” the state Department of Energy and Environmental Protection said.
Orsted had also pitched into Connecticut and Rhode Island but declined to submit into Massachusetts, and as of press time has not been awarded any project capacity.
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