Vineyard Wind contracts expected to cut Mass. electricity bills by $1.4 billion

BOSTON (WWLP) – The Healey-Driscoll Administration announced the activation of Vineyard Wind contracts, which will save Massachusetts customers a projected $1.4 billion on electricity bills over the next 20 years.

Massachusetts customers are expected to see an average of 1.4 cents per kilowatt-hour in direct bill savings, a price that is less than half of the peak pricing observed this past winter.

These contracts ensure stable and affordable prices for two decades. Vineyard Wind previously lowered electricity prices by competing in wholesale electricity markets, consistently offering lower prices than other electricity sources.

The Vineyard Wind project has generated nearly 4,000 jobs and contributed $1.94 billion in total economic output. It is also expected to reduce carbon emissions by more than 1.6 million metric tons annually– the equivalent of removing 325,000 cars from the road each year or burning more than 3.7 million barrels of oil.

Offshore wind serves as a critical energy resource in the Northeast, capable of meeting the New England region’s winter peak demand for electricity. This is particularly true during the coldest winter months when the New England grid faces its highest constraints.

A report from Acadia Center indicated that during a week-long deep freeze earlier this year, wind generation peaked, reaching near-record performance levels. The report suggested that offshore wind could have saved New England ratepayers at least $400 million in utility bill costs during the winter of 2024/2025, reducing energy market prices by 11% and protecting ratepayers from expensive and volatile natural gas markets.

“Vineyard Wind is a key part of our all-of-the-above strategy to lowering energy prices,” said Governor Maura Healey. “Throughout one of the coldest winters in recent history, Vineyard Wind turbines powered our homes and businesses at a low price, and now that price goes even lower with the activation of these contracts. Especially as President Trump is taking energy sources off the table and increasing prices with his war in Iran, we should be leaning into more American-made wind power to lower costs, create jobs, and make our country more energy independent. Massachusetts is uniquely positioned to lead on this and deliver major savings to our residents.”

The Vineyard Wind project began construction in late 2022. Massachusetts was the first state in the country to proceed with a utility-scale offshore wind project.

The Healey-Driscoll Administration is actively pursuing additional measures to increase energy supply in Massachusetts, reduce energy bills, and meet rising electricity demand. Last month, Governor Healey issued an executive order aimed at adding 10 gigawatts of new energy resources by 2035, which is projected to result in $10 billion in savings for Massachusetts residents and businesses.

All facts in this report were gathered by journalists employed by WWLP. Artificial intelligence tools were used to reformat information into a news article for our website. This report was edited and fact-checked by WWLP staff before being published.