Three New England states extend offshore wind solicitation due date

Avangrid

18/01/2024 21:47

By Scott DiSavino
       Jan 18 (Reuters) - Massachusetts, Connecticut and Rhode
Island extended on Thursday the date bids are due in the states'
next offshore wind solicitations from Jan. 31 to March 27.
    Offshore wind is expected to play a critical role in U.S.
President Joe Biden's and several states' plans to decarbonize
the power grid and combat climate change.
    But offshore wind industry had a tough time in 2023 with
some developers cancelling contracts to sell power in several
states because their proposed projects were no longer economic
due to soaring inflation, interest rates and supply chain
problems.
    "Extending the schedule for our current solicitation creates
additional time for developers to react to the possibility of
further guidance from the IRS (U.S. Internal Revenue Service)
regarding key tax credits available to offshore wind projects,"
Lauren Diggin, a spokeswoman at the Massachusetts Department of
Energy Resources (DOER), told Reuters.
    "We know the importance of capturing all available savings
for Massachusetts customers, and federal tax credits are
essential to lowering the price of offshore wind for our
ratepayers and improving project viability for offshore wind
developers," Diggin said.
    Some of the companies that have canceled contracts to sell
power in the U.S. Northeast and therefore have projects that
could be bid in upcoming solicitations, include units of
European energy firms Equinor  EQNR.OL , BP  BP.L , Orsted
 ORSTED.CO  and Avangrid  AGR.N , Shell  SHEL.L , EDP Energias
de Portugal  EDP.LS  and ENGIE  ENGIE.PA .
    Several of those companies are working together on the same
projects.
    In addition to Massachusetts, Connecticut and Rhode Island
also extended their respective offshore wind request for
proposals (RFP) schedules, which will also extend the schedule
for the receipt of Multi-State Bids, Diggin said.
    The three states agreed in October to jointly procure
offshore wind power to help get more projects built.
    Along with the extended date to submit bids, the
Massachusetts DOER revised the rest of its solicitation
schedule. 
    Under the new Massachusetts schedule, the selection of
projects was moved to Aug. 7, execution of long-term contracts
with the DOER was moved to Oct. 9, and the submission of
long-term contracts for state Department of Public Utilities
(DPU) approval was moved to Nov. 13.

 (Reporting by Scott DiSavino
Editing by Marguerita Choy)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))