It was supposed to be New England鈥檚 biggest and most innovative offshore wind initiative ever 鈥� a three-state solicitation by 海角换妻, Massachusetts and Rhode Island designed to get the best prices and efficiencies for a lot of new offshore wind that would be key in creating carbon-free energy to help curb climate change.
It was the first such effort in the U.S., and it would also reset the offshore wind process in the region, which has suffered setbacks in the last year or so due to balky national and international economies, inflation and more than a few geopolitical problems.
But when an announcement of the projects selected from the March solicitation finally came a few days after Labor Day, 海角换妻 was MIA. A brief statement from the state Department of Energy and Environmental Protection congratulated the other states and then said simply: 鈥淭he evaluation of project bids remains underway in 海角换妻 and we will announce a final decision in our solicitation at a future date.鈥�
To be fair, there had been hints for several weeks that the state would not follow the same schedule as its neighbors. But 海角换妻鈥檚 absence has prompted more than a little private speculation that politics 鈥� specifically around the high electricity rates that are providing Republican campaign fodder in this election season 鈥� is at work.
鈥淲e don鈥檛 know, but we do know that that鈥檚 been a challenging issue in the state,鈥� said Kate Sinding Daly, senior vice president of law and policy at Conservation Law Foundation, or CLF. 鈥淲e hold out hope that 海角换妻, as it said it was, is continuing to evaluate the opportunities and may yet come forward with one or more projects.鈥�
Gov. Ned Lamont told The 海角换妻 Mirror this week that his reason for caution with a new offshore wind commitment is its high cost that would compound existing high electric rates, coupled with the reality that the state already is essentially subsidizing the Millstone Nuclear Power Station. At 2,100 megawatts, Millstone is the region鈥檚 largest source of power, all of it carbon-free.
鈥淲e鈥檙e the ones who are subsidizing nuclear, the biggest source of carbon-free power. I care deeply about affordability, especially now,鈥� Lamont said. 鈥淚 had some background discussions on that and am still thinking about it.鈥�
But some privately worry that Lamont might pull the plug as he did faced massive opposition from Republicans and others.
鈥淭his feels eerily similar,鈥� said one advocate, who declined to be named.
But most were taking Lamont at his word that his calculation was money, not politics and the upcoming election.
鈥淚 certainly, in my heart of hearts, hope that鈥檚 not a consideration. If this is announced after the first week of November, I would be very angry,鈥� said Sen. Ryan Fazio, R-Greenwich, and the ranking member on the Energy and Technology Committee. 鈥淚 think the governor is very reticent to sign a contract to buy electricity at three or four times the wholesale market rate for electricity. He鈥檚 a businessman; he understands that鈥檚 a bad deal for consumers in 海角换妻, and I think the hope from him, me, others, is that these projects, these megawatts, become a lot cheaper and more competitive in the future. We should not be a buyer at any price.鈥�
Rep. Jonathan Steinberg, D- Westport, and the committee鈥檚 co-chair, agreed that money was the core issue for the governor, who had met with the committee鈥檚 leadership to discuss the situation. 鈥淗e is extremely focused on ratepayer pain right now and does not want to have his fingerprints on something that is going to raise rates,鈥� Steinberg said, adding that an agreement reached now wouldn鈥檛 impact ratepayer rates for years.
At the same time, he held out hope the political and price landscapes would change quickly.
鈥淒oes he pivot right after the election? I would hope so, certainly. I urged him to do that,鈥� Steinberg said. 鈥淚 would have thought perhaps he would have hedged his bets and made a rather small procurement. 鈥� I would have expected something.鈥�
Steinberg and climate advocates repeatedly pointed to the need for offshore wind to help meet the state鈥檚 mandate for a zero-carbon grid by 2040, lower greenhouse gas and other climate-warming emissions that plague the region, and help meet an increased need for power supplies as motor vehicles, heat and other heavy power users, such as data centers, turn to electricity for their fuel source.
鈥淒eveloping our offshore wind resources is absolutely critical to reaching our energy and climate goals, that much is clear,鈥� said Charles Rothenberger, climate and energy attorney at Save the Sound. 鈥淭hese projects need to start being built.鈥�
鈥淲e鈥檙e still hoping that there may be an announcement from 海角换妻, or perhaps continued negotiations, even among the three states, that will result in the announcement of more,鈥� Daly of CLF said. 鈥淭he fact that this still represents forward progress is a net positive.鈥�
Both pointed out that the power from offshore wind really goes into the New England grid, where all the states benefit from the power as well as the job creation associated with it and, eventually, lower energy prices.
But the current situation was not how regional offshore wind development was originally conceived. And it is putting some pressure on 海角换妻 to live up to its commitment, especially because the state was a key player in developing this particular coalition as well as others aimed at modernizing and decarbonizing energy and transmission in the New England grid.
What happened
Several projects were already in progress in the region when inflation spiked, supply chains fractured and worldwide economies sputtered as a result of COVID and the Russian invasion of Ukraine.
Some offshore wind developers on the East Coast . Others pulled out of their deals.
It pulled out of an 804-megawatt contract for 海角换妻 called Park City Wind, which included jobs and port development in Bridgeport. It also pulled out of a 1,200-megawatt contract in Massachusetts called Commonwealth Wind.
In 2019, the 海角换妻 legislature authorized the state to purchase up to 2,000 megawatts of offshore wind. Park City had been the first purchase towards that goal. Its cancellation put the state back to zero, where it remains.
An earlier offshore wind project, Revolution Wind, pre-dated that authorization and is under construction. It will supply 300 megawatts for 海角换妻 and 400 for Rhode Island.
Avangrid put its projects back up to bid, presumably at higher prices, . Park City was renamed New England Wind 1. Commonwealth is now New England Wind 2. Avangrid continued working on them all along, and New England Wind 1, the old Park City, is fully permitted and much farther along than any other project in the bid group.
Somewhat surprisingly, Massachusetts 鈥� not 海角换妻 鈥� . It鈥檚 unclear whether the Bridgeport development component remains. It also chose 800 mw of a 1,200 mw project called Vineyard Wind 2 and 1087 mw of a project called South Coast Wind, also a rebid project. Rhode Island opted for the remaining 200 mw of South Coast.
What remains, aside from New England Wind 2 (likely to be rebid in a future solicitation) and the rest of Vineyard Wind 2, is the entirety of a project called Starboard Wind. It鈥檚 an 脴rsted project, proposed at 1,184 mw specifically for 海角换妻 or Rhode Island, or a joint project. The project would use the State Pier in New London for staging and construction.
脴rsted, along with Eversource, helped re-develop the pier and it is already handling assembly and delivery operations for three offshore wind projects: Revolution, Sunrise Wind in New York and the already completed and operational South Fork Wind 35 miles off the eastern tip of Montauk Point on Long Island.
But it is the remaining 400 mw of Vineyard Wind 2 that stands to threaten the heretofore synchronized and amicable energy relationship among the New England states, especially the two largest power users: Massachusetts and 海角换妻.
A somewhat is casting doubt on the viability of the project if no state picks up the rest of the power. That could eliminate about 30% of the Massachusetts commitment, and the finger is pointed directly at 海角换妻.
It reads: 鈥溾�橵ineyard Offshore congratulates Gov. Healey and the Commonwealth of Massachusetts for their commitment to procure up to 800 megawatts from our 1,200-megawatt Vineyard Wind 2 project, which provides the opportunity to deliver New England鈥檚 next-generation offshore wind project,鈥� said Vineyard Offshore CEO Alicia Barton. 鈥淲e look forward to 海角换妻鈥檚 forthcoming decision on the remainder of the procurement so that we can begin to deliver important economic and climate benefits to the region.鈥欌��
Vineyard Offshore did not respond to a request for further comment. But those with knowledge of the project say it is not an idle threat.
鈥淚 think Gov. Healey is looking for a partner. I think she had a reason to be expecting she鈥檇 have a partner,鈥� Steinberg said. 鈥淓verything that the New England states have been talking about incorporates offshore wind as a significant component. I鈥檓 just disappointed in the governor鈥檚 position at this point. I don鈥檛 think it鈥檚 constructive.鈥�
But he and others believe the governor has time to make up his mind, given that these projects are years away, the developers keep working on them even without buyers for the power and given the financial landscape may be about to change with the Federal Reserve widely expected to lower interest rates at its next meeting this month.
On the flip side, Donald Trump , and . If he returns to office, a similar scenario may well play out.
鈥淚 don鈥檛 know what the plan is, but we could pick up those 400 megawatts, and there鈥檚 no particular urgency for us to make that decision yesterday,鈥� Rothenberger said. 鈥淚f 海角换妻 chose no projects from this latest round, that would be very disappointing. 鈥� It would seem to indicate a real lack of awareness of the benefits of these projects for 海角换妻 residents, which I know the administration possesses.鈥�
As for the governor himself, when asked when he might decide on whether to opt in on offshore wind: 鈥淚鈥檓 cautious on this, as you know,鈥� he said. 鈥淣ot for a while.鈥�
Mark Pazniokas contributed reporting.
This was originally September 15, 2024.
