Maryland PSC approves offshore wind RECs for US Wind and Skipjack
In a move poised to aid the development of more than 1,600 MW of wind energy off the coast of Maryland, the state’s Public Service Commission (PSC) last week awarded offshore wind renewable energy credits to two developers: US Wind, Inc. and Skipjack Offshore Energy, LLC.
The two companies are pursuing separate offshore projects, but put together, the commission estimated the pair will bring in nearly $1 billion in additional in-state spending and create more than 10,000 new jobs. The award followed a second round of wind solicitations that closed in June, for which US Wind submitted three bids and Skipjack submitted two. Analyses of each proposal were undertaken by independent consultants.
Each bid was evaluated by its impacts to customer bills, the state’s health, environmental and climate interests, and economic development benefits for Maryland.
“The effects of climate change are real and, with its more than 3,000 miles of tidal shoreline, Marylanders are especially vulnerable,” Jason Stanek, commission chairman, said. “That‘s why it is important for the commission to take this action that will put our state on a path of deeper decarbonization and help Maryland achieve its aggressive clean energy goals — the residents of our state and region deserve no less.”
In its decision, the PSC concluded that selected projects can be built without exceeding the incremental residential and nonresidential ratepayer electric bill impact caps of 88 cents per month for residential customers and 0.9 percent per year for commercial and industrial customers, as set by the Maryland General Assembly. As a result, US Wind — which won with its second bid of 808.5 MW — will be awarded credits to the tune of $54.17 per MW hour (MWh) for 20 years, while Skipjack’s Phase 2.1, 846 MW project won $74.61 per MWhour for the same period.
Both new projects are expected to be operational before the end of 2026, pending review by the U.S. Department of the Interior’s (DOI) Bureau of Ocean Energy Management (BOEM). Development will not be without conditions, though, including the creation of a minimum of 10,324 direct jobs, working with small, local and minority businesses, passing 80 percent of any construction cost savings to ratepayers, mitigation of any adverse environmental effects and more.
As a result of these awards, a planned two additional application periods have been closed by the commission.
In addition, the companies were already pursuing a combined 368 MW of wind energy offshore of Maryland.
