Massachusetts, Rhode Island, and Connecticut, which are the New England states in the US, have signed a MoU to purchase up to 6 GW of offshore wind. The Massachusetts Department of Energy Resources, the Connecticut Department of Energy and Environmental Protection, and the Rhode Island Office of Energy Resources have all signed the MoU.
Meanwhile, the three states intend to seek multi-state offshore wind ideas under the MoU. Their collaborative effort is projected to provide cost savings through large-scale and feasible project development. Furthermore, the states hope to foster environmental fairness and create economic possibilities through their cooperation.
Moreover, the states intend to urge developers to submit multi-state offshore wind bids through their respective procurements in 2024. The combined solicitations are estimated to total up to 6 GW, but actual project selections may be contingent on individual bid evaluations. Any of the two or three states can choose a multi-state proposal, which is restricted by the purchasing power of each state, and divide the energy certificates from a single project.
In May 2023, Ørsted agreed to pay $625 million for Eversource Energy’s 50 per cent ownership in the two companies’ uncontracted federal offshore wind lease joint venture. The agreement also included contracts and partnerships that are critical to operating assets. The deal was expected to close in the third quarter of 2023 after receiving regulatory approval.
REGlobal’s Views: The U.S. offshore wind energy target was set in March 2021 for 30 GW by 2030. The country has witnessed various auctions and project announcements in the past few months to enable this capacity addition.
