HARTFORD, CT – The offshore wind industry took a step forward Wednesday when four companies submitted bids to the state Department of Energy and Environmental Protection (DEEP) to supply clean energy to Connecticut.
Ørsted, Vineyard Offshore, SouthCoast Wind, and Avangrid each submitted bids under a new framework approved on Oct. 4 that includes a memorandum of understanding between Connecticut, Massachusetts, and Rhode Island as possible purchasing partners. What it means is that companies can bid to provide power to one, two, or all three states, and multi-state proposals with Massachusetts and Rhode Island will be evaluated between the states that they concern.
DEEP issued a request for proposals in October seeking a maximum of 2,000 megawatts for Connecticut, while Rhode Island and Massachusetts are looking for a combined 4,800.
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DEEP Commissioner Katie Dykes said in a news release Wednesday that the process of reviewing multi-state proposals is ongoing.
“We look forward to evaluating the submitted proposals received under this RFP over the coming months, and coordinating review of any multi-state proposals received with Massachusetts and Rhode Island, as we explore opportunities to bring more clean, affordable, and reliable energy sources online for Connecticut residents,” Dykes said.
Ørsted said in a release Wednesday that it submitted a proposal to provide up to 1,184 megawatts to DEEP. That proposal, Ørsted said, would generate the equivalent of 800 new jobs and provide power to 600,000 homes in the multi-state region.
According to Nicole Verdi, Ørsted’s director of government affairs and policy, most of those jobs would be full-time at the State Pier in New London, where the turbines for the project will be built. Verdi said in a phone interview that Ørsted is committed to building a clean energy resource for rate payers that won’t cost them or the states too much.
“We want to build affordable, accessible, and responsible clean energy,” she said, adding that the project would amount to a $420 million investment in the state.
Ørsted is already in the process of building out another project to supply Connecticut with electricity – Revolution Wind. The company said it will start assembling parts in April for 65 turbines off the coast of Rhode Island. That project will provide about 300 megawatts of power to the state, and was selected jointly by Connecticut and Rhode Island.
Other proposals were submitted by SouthCoast Wind, Vineyard Offshore, and Avangrid under the pretense that they would be built off the coast of Massachusetts.
More coverage offshore wind:
Three offshore wind bids in Massachusetts plan major operations in New Bedford, Salem:
–New England News Collaborative
Massachusetts, Rhode Island and Connecticut receive proposals for offshore wind projects:
–The Associated Press
“Today, SouthCoast Wind submitted a bid to deliver 1,200 MW of clean renewable energy to the New England grid. The bid was submitted to Massachusetts, Connecticut, and Rhode Island and is eligible for multi-state selection. We look forward to releasing more information about our bids, including our construction strategy, in the weeks and months to come,” Rebecca Ullman, SouthCoast Wind director of external affairs, said in a statement Wednesday.
Vineyard Offshore released a statement Wednesday which detailed some of its proposal:
“The proposed project will deliver 1,200 MW of clean, reliable energy to the New England grid, enough to power more than 650,000 homes, starting in 2031,” the statement read. “Vineyard Wind 2 will avoid 2.1 million tons of carbon dioxide (CO2) emissions per year across the region, equivalent to taking 414,000 cars off the road, as well as improve air quality and reduce pollution-related health costs and environmental impacts.”
Avangrid, which had previously pulled out of two major offshore wind power projects in the region, also submitted a proposal to DEEP.
Verdi said that Ørsted believes it will receive word on its proposal by August.
There has been a lot debate over the last several weeks among members of the Connecticut General Assembly about the future of clean, affordable energy in the state. Republicans have voiced a desire for Connecticut to continue partnering with renewable energy companies, but only if the contracts stipulate that rates be capped at no more than twice current lowest-priced electricity option.
Biden administration announces tax credits
In addition, the Biden administration recently ensured that offshore wind projects would be eligible for federal tax credits.
Under the rules that are part of the landmark climate change laws in the Inflation Reduction Act, wind developers can claim an IRA base 30% credit for renewable energy projects and an additional 10% tax credit if their project is in an “energy community,” meaning a community that employs people in the fossil fuel industry who will need help transitioning out of those jobs as the renewable energy industry gets moving.
Gov. Ned Lamont said in a statement Monday that the state appreciates the guidance from the Biden administration regarding the new credit.
“Today’s guidance, which was requested by Connecticut and other states, will help to bring lower-cost offshore wind power to Connecticut ratepayers while driving new investments in our state’s communities that are leading the clean energy revolution,” he said in the statement.
Sen. Norm Needleman, who co-chairs the legislature’s Energy and Technology Committee, said in a phone interview Thursday that the federal tax credit would “imply a lower cost for wind energy,” but those exact numbers have yet to be determined because the state doesn’t know how much energy it will buy.
“We don’t know how much we will buy. What we do know is it will be 10% cheaper,” Needleman said.
EDITOR’S NOTE: Two of the companies that submitted proposals – Ørsted and Vineyard Offshore – are currently advertising on this website. A third, Avangrid, has previously purchased advertising.
