US greenlights rebooted Iberdrola offshore wind giant ahead of multi-state tender

Biden administration's COP go-ahead puts Avangrid's New England Wind in pole position for contest

. Elizabeth Klein, director of Bureau of Ocean Energy Management (BOEM).
. Elizabeth Klein, director of Bureau of Ocean Energy Management (BOEM).Photo: BOEM

US federal regulators approved Iberdrola-owned Avangrid’s 2.6GW New England Wind’s construction and operations plan (COP), the final go-ahead for capacity seeking revival in the ongoing New England multistate tender after being cancelled in 2023.

Bureau of Ocean Energy Management (BOEM) announced its approval Monday for construction and operation of two offshore wind energy facilities, known as New England Wind 1 & 2, enough to power more than 900,000 homes.

This is one of many COP approvals by President Joe Biden's administration as it ramps towards its 30GW by 2030 capacity target that is largely seen as out of reach but continues to galvanise sector development.

BOEM director Elizabeth Klein said: “We are proud to announce BOEM’s final approval of the New England Wind projects. They represent a major milestone in our efforts to expand clean energy production and combat climate change.”

BOEM oversees the multi-agency federal permitting process for offshore wind, which includes consulting and approvals by National Marine Fisheries Service (NMFS), the Environmental Protection Agency, the US military and Coast Guard, and others.

“By securing all federal, state, regional, and local permits, New England Wind 1 has the potential to put shovels in the ground next year and deliver thousands of jobs, local investment, and needed clean energy before the end of the decade,” said Avangrid CEO Pedro Azagra.

Tri-state procurement

Previously, Avangrid had developed its lease area 23 miles (37 km) south of Martha’s Vineyard as the 1.2GW Commonwealth Wind for Massachusetts and 804MW Park City for Connecticut.

It scrapped the power purchase agreements (PPAs) for both projects last year as surging inflation and financing costs made them uneconomical.
Avangrid revived the projects in 2024 by submitting multiple bids totalling some 1.8GW into the tri-state New England tenders that closed in March.

Connecticut, Massachusetts, and Rhode Island individually and jointly solicited a combined 6.8GW of capacity, much of it to replace projects cancelled last year due to inflationary headwinds.

Avangrid’s proposals represent two projects – the 791MW New England Wind 1 and 1.08GW New England Wind 2.

This milestone approval “furthers the renewable energy infrastructure New England needs to meet electricity demands, strengthen the grid, and provide clean air for its citizens,” said Anne Reynolds, offshore wind lead for industry group American Clean Power Association (ACP).

Biden ramp

BOEM has ramped offshore wind project approvals and leasing as it nears the election in November that could halt the sector in its tracks.

Republican candidate Donald Trump has vowed to stop offshore wind “on day one” should he be elected to a second term, and as nearly all projects are in federal waters, he would have significant leeway to interfere with sector development.
While Biden has pledged to put the US on a low-carbon energy transition and Trump is widely considered a friend to fossil fuel, renewables and oil & gas did well under both administrations.
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Published 1 July 2024, 22:02Updated 2 July 2024, 13:43
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