Vineyard Wind 1 receives funding from tax equity package
The Vineyard Wind 1 wind farm project off the coast of Massachusetts received the first funding from the tax equity package signed in October 2023.
Government actions, such as federal tax credits for renewable energy projects, have been instrumental for Vineyard Wind 1, which is on track to be the first large-scale offshore wind project in the U.S. This funding represents a critical milestone toward the delivery of power from the project.
“Receiving this first funding from our tax equity agreement is another key achievement that takes us one important step closer to the historic delivery of first power to Massachusetts,” said Avangrid CEO Pedro Azagra, CEO of Avangrid, which is the developer of the project, said. “As we continue to execute our construction and financing plan for Avangrid’s Vineyard Wind 1, we are demonstrating our ongoing commitment to helping turn the dream of offshore wind in the U.S. into reality.”
Vineyard Wind 1 is an 806 MW project located 15 miles off the coast of Martha’s Vineyard and will be the first commercial scale offshore wind project in the United States. When operational, it will generate electricity for more than 400,000 homes and businesses in Massachusetts under its competitive long term power purchase agreements with National Grid, Eversource, and Unitil.
It is expected to save ratepayers $1.4 billion over the first 20 years of operation. Further, it will reduce carbon emissions by more than 1.6 million tons per year.
Vineyard Wind 1 began on site construction in late 2021, achieved steel-in-the-water in June 2023, and completed the nation’s first offshore substation in July 2023.
Also, in July 2021, Vineyard Wind signed the first Project Labor Agreement for an offshore wind project in the United States, which provides for the creation of 500 union jobs through the project. Already, Vineyard Wind 1 has delivered nearly double of its commitment through the PLA by creating 937 union jobs through two years of construction.
