State opens up fourth wind solicitation - Martha's Vineyard Times
State opens up fourth wind solicitation - The Martha's Vineyard Times
The Massachusetts Department of Energy Resources issued a Request for Proposals for Massachusetts’ fourth and largest offshore wind solicitation to date on Wednesday, August 30.
Gov. Maura Healey’s office, in a press release, announced that the latest bid request will more than double the commonwealth’s current wind power solicited compared to previous procurements.
The request for proposal (RFP) invites submittals for offshore wind generation to select up to 3,600 megawatts, which represents 25 percent of the state’s annual electricity demand; Healey’s office says it is the largest procurement for offshore wind energy generation ever in New England.
Bidders can offer proposals of between 200 MW and 2400 MW.
“Our administration continues to build a robust, sustainable offshore wind industry, and we are excited to issue this historic RFP, the largest yet in our region,” said Healey. “With this RFP, Massachusetts is continuing on our path to be a global leader in this growing industry. With our top academic institutions, robust workforce training programs, innovative companies, and support from every level of government — Massachusetts is all-in on offshore wind.”
The bid request comes as some developers are seeking new contracts with the state, amid supply chain issues and inflation. Commonwealth Wind and SouthCoast Wind, both off the Vineyard coast, have both suggested they may rebid their projects with higher prices in the next procurement round. On Tuesday, SouthCoast wind agreed to pay $60 million to terminate its contracts to produce some 1,200 megawatts of offshore wind power.
State House News reports that the Healey administration says the new RFP “does not limit eligibility” based on a bidder’s history, but the track record would be considered.
The governor’s office says the request allows for additional flexibility in proposals. To account for challenges driven by inflation and other macroeconomic trends, the RFP permits bidders to submit an alternative indexed pricing proposal intended to reduce risk to ratepayers and bidders.
The release from the governor’s office says the RFP makes clear that more weight is given to projects with robust economic development proposals supporting minority- and women-owned businesses and supporting low-income workers, workers of color, and workers from impacted environmental justice communities.
Projects must also develop an environmental and fisheries mitigation plan that considers commercial, recreational, and indigenous fishing rights.
Bids are due Jan. 31, 2024. The state intends to select a bidder in June of next year.
Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.