Massachusetts Department of Public Utilities approves offshore wind energy contracts

The Massachusetts Department of Public Utilities (DPU) recently approved long-term contracts for 800 megawatts (MW) of offshore wind between Vineyard Wind and the Commonwealth’s Electric Distribution Companies.  

“The approval of these contracts is an important step toward the completion of the largest offshore wind project in the country, which will significantly reduce greenhouse gas emissions, provide Massachusetts residents and businesses with cost-effective clean energy and promote economic development,” Gov. Charlie Baker said.

These contracts are the result of An Act Relative to Energy Diversity, which Baker signed in 2016.

Vineyard Wind also committed in these contracts to contribute $15 million to a fund that will invest in projects to promote the use of battery storage in low-income communities and support the Commonwealth’s goal of further developing energy storage systems.

Vineyard Wind’s bid was selected for contract negotiation in May 2018 based on criteria established under a Request for Proposals (RFP) previously subject to public comment and submitted to the DPU for review and approval on July 31, 2018. Evaluation of the bids determined that Vineyard Wind would provide the greatest overall value to Massachusetts customers. The DPU’s order approves the selection and finds that the contracts are cost-effective and in the public interest.

“This approval by the Department of Public Utilities ensures that this project offering competitively priced and locally produced offshore wind energy to the Commonwealth can move forward,” Energy and Environmental Affairs Secretary Matthew Beaton said. “The administration looks forward to continuing to grow its emerging offshore wind industry while leading the nation in combating climate change.”

The Commonwealth’s Electric Distribution Companies submitted their second RFP to the DPU for up to 800 MW of additional offshore wind on March 27.