Massachusetts, Rhode Island and Connecticut today announced New England’s first offshore wind multi-state coordination memorandum of understanding (MOU), which creates a pathway for a potential coordinated selection of offshore wind as each state solicits offshore wind energy generation through their respective state procurements. This MOU is the first of its kind in the United States.
Through this MOU, the three states will together seek multi-state offshore wind proposals that would expand benefits for the region, capture cost reductions by developing projects at scale, and develop into viable projects. In coordinating, the states say they will amplify efforts to foster regional economic development, create high-paying, in-demand jobs, and promote environmental justice and equity.
The three states request that offshore wind developers submit multi-state offshore wind project proposals for consideration by the soliciting parties through their respective offshore wind procurements for selection in 2024. Combined, the states’ solicitations are for up to 6,000 MW of offshore wind. Actual project selections will depend on states’ individual assessments of proposals’ costs and benefits to ratepayers and other evaluation criteria specified in states’ requests for proposals. Any two or three states may agree to select a multi-state proposal up to each state’s procurement authority and split the anticipated megawatts and renewable energy certificates from a single project.
It’s the Economy Stupid!
The offshore wind industry has been grappling with uncertainties recently, with multiple power purchase agreements (PPAs) coming to an end, and developers and utilities backing out of projects.
Rhode Island Energy recently pulled out of its PPA with Ørsted and Eversource for the Revolution Wind 2 offshore project, citing higher interest rates, increased expenses, and questionable federal tax credits, concluding that the project had become uneconomical.
In July, Avangrid agreed to pay $48 million to pull out of a PPA with Eversource Energy, National Grid, and Unitil for another offshore wind project, the 1,223 MW Commonwealth Windlocated 20 miles south of Martha’s Vineyard. Rhode Island Energy, meanwhile, terminated its PPA with Ørsted and Eversource for the offshore wind farm Revolution Wind 2.
While the Federal Reserve grapples with what it perceives as “inflation” its deflationary policy of high interest rates is closing down advanced new technological development, starving it of necessary cash. Hofmann & Schweitzer decries that policy - its hurting businesses, governmentsand mostly small businesses and families. Look at mortgage rates.
At Hofmann & Schweitzer, we will continue to update you on the status of where and when these excellent construction and maritime job opportunities in the wind energy development field will occur. We will be there for the needs of labor if you or your loved one is injured, which can be disastrous to your family.
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