Iberdrola, Orsted, CIP and Ocean Winds pile into landmark 7GW US offshore wind rounds

Developers bid projects that could see three New England states replace lost capacity and add to nation’s pipeline

Pedro Azagra, CEO of Avangrid.
Pedro Azagra, CEO of Avangrid.Foto: Avangrid

Four developers with ongoing projects in the Massachusetts and Rhode Island wind energy areas (WEAs) submitted proposals into the US’ first agreement for coordinated multi-state procurement.

On Wednesday, Connecticut, Massachusetts, and Rhode Island closed offshore wind tenders totalling 6.8GW.

Last year, these states signed a memorandum of understanding (MoU) to collaborate on offshore wind procurement, although each held its own tender, and they are not obligated to work together.

Iberdrola’s Avangrid, Copenhagen Infrastructure Partners (CIP)’s US subsidiary Vineyard Offshore, Danish pacesetter Orsted, and French-Portuguese joint venture (JV) Ocean Winds, all submitted into the state rounds.

Massachusetts, the largest state, is seeking up to 3.6GW, in part, to replace the 2.4GW cancelled last year amid spiralling inflation and interest rates. Connecticut, which saw over 800MW of capacity voided as well, is looking to procure 2GW.

Rhode Island, the nation’s smallest state by area, is seeking up to 1.2GW. This would add to 400MW under contract and meet its ambitious energy agenda of 100% clean power by 2033.

CIP, which along with JV partner Avangrid is constructing the nation’s flagship array, the 800MW Vineyard Wind, submitted proposals to all three states for a 1.2GW project.

“Our project will deliver more than $2bn in economic benefits, create opportunities for workers and local businesses, and build on partnerships with local governments, organisations, and institutions across all three states,” said Vineyard Offshore CEO Alicia Barton.

Avangrid scrapped two projects last year: the 1.2GW Commonwealth array to Massachusetts and the 804MW Park City to Connecticut. Its submitted New England Wind proposal encompasses 1.8GW of capacity.

Its proposals represent two projects – the 791MW New England Wind 1 and 1.08GW New England Wind 2. They were submitted individually and jointly into each state’s tender.

Avangrid CEO Pedro Azagra said that with nearly all local, state, and federal permits in hand and interconnection rights secured, New England Wind offers “a shovel-ready project that is prepared to start construction as soon as next year.”

Ocean Winds, the JV of EDPR and Engie, resubmitted its cancelled 1.2GW SouthCoast project into the rounds, although it didn’t specify to which states.

Ocean Winds is developing the array on its own after former partner Shell departed earlier this year, with CEO Wael Sawan insisting the oil major will only advance green power projects that meet its profitability criteria and fit with a wider integration strategy.

"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," Rebecca Ullman, director, external affairs, at SouthCoast Wind, said in an email.

"We look forward to releasing more information about our bids in the weeks and months to come." Earlier, company CEO Michael Brown said the project is on schedule to deliver power to the regional grid by 2030.

Orsted joined the scrum with its 1.18GW Starboard Wind project into Connecticut's and Rhode Island’s tenders but opted to stay out of Massachusetts.

“We felt the flexible structure and later COD [commercial operations date] of Rhode Island and Connecticut’s solicitations better addressed today’s macroeconomic challenges and provided a more favorable path for us to build a project,” Nicole Verdi, head of government affairs & policy, New England for Orsted told Recharge.
The developer’s 704MW Revolution Wind split between the two states is currently under construction out of State Pier in Connecticut.

Massachusetts and Rhode Island confirmed that projects would be selected by 9 October this year, with both states submitting executed contracts to their respective utilities regulators by 13 November.

Connecticut said it would announce project selection in the third quarter.

(Copyright)
Published 27 March 2024, 18:25Updated 28 March 2024, 07:35
AmericasUSCIPOrstedOcean Winds