Three New England states, Massachusetts, Connecticut, and Rhode Island have agreed to jointly procure future wind energy projects. The collaboration was announced by the governors of their respective states, and is a first-of-its-kind multi-state agreement in the U.S.
According to Connecticut Governor, Ned Lamont, the collaboration could help the states obtain clean energy at more cost-effective rates. Tapping into offshore wind energy projects is crucial for each state to achieve its climate objectives.
Lamont stated, “We can go further when we work together.” This new collaborative framework might set an example for other regions in the U.S., especially at a time when certain offshore wind developers are looking to revisit contracts established in 2019 and 2020 due to increased costs, including rising steel prices and higher interest rates.
Recently, Avangrid, an electric utility company, withdrew from Connecticut’s largest offshore wind initiative, the Park City Wind project, deeming its current terms as “unfinanceable.” However, Lamont confirmed that Connecticut intends to reopen bids for the project in early 2024.
Under the new agreement, energy developers have a January deadline to present their proposals for offshore wind projects capable of producing up to 6,000 megawatts (MW). Following a review of the proposals, two of the three states can select a project and distribute the expected energy output amongst themselves.
Source: Associated Press
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