((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Another bidder added to the list) by Laila Kearney and Scott DiSavino
A combined Connecticut-Massachusetts-Rhode Island tender for offshore wind projects on Wednesday attracted bids from at least four developers, including units of European energy companies Iberdrola IBE.MC and Orsted ORSTED.CO .
The U.S. offshore wind industry is showing signs of a comeback this year, with several projects in various stages of development and construction, after a disastrous 2023 where developers canceled contracts and took an estimated $9.1 billion. dollars of depreciation and value losses on projects.
So far, Avangrid, Orsted, Vineyard Offshore and SouthCoast Wind have made proposals in the tri-state auction, which is expected to play a critical role in federal and state plans to decarbonize the power grid and mitigate climate change .
Avangrid, a member of the Iberdrola Group, has submitted several proposals, including the 791 megawatt (MW) New England Wind 1 project and the 1,080 megawatt New England Wind 2 project. If combined, the two projects could produce enough electricity to power nearly a million homes.
“Avangrid is ready to go,” Avangrid CEO Pedro Azagra said in a press release, adding that construction of New England Wind 1 could begin as early as next year.
The company said New England Wind 1 could enter commercial operation in 2029.
In a separate bid, Orsted, the world’s largest offshore wind company, proposed the 1,184-megawatt Starboard Wind project, which could provide electricity to Connecticut and/or Rhode Island.
Vineyard Offshore said it has proposed the 1,200 megawatt (MW) Vineyard Wind 2 project, which would be located 29 miles (46.7 kilometers) south of Nantucket in Massachusetts. The project could start in 2031.
Vineyard Offshore is owned by funds managed by Copenhagen Infrastructure Partners.
Another project, called SouthCoast Wind, supported by a joint venture between EDP Energias de Portugal EDP.LS and Engie
ENGIE.PA, was bid for with few details about its size and scope.
After contracts to sell offshore wind power to utilities in Massachusetts and Connecticut were canceled due to rising costs from rising interest rates and supply chain issues, Massachusetts , Connecticut and Rhode Island agreed in October 2023 to jointly pursue offshore wind energy at the site to help build new projects.
Some companies that canceled contracts to sell offshore wind power in the northeastern United States in 2023 have indicated they have projects ready to be offered in upcoming tenders. These include units from Avangrid, BP BP.L, EDP Energias de Portugal EDP.LS and Engie ENGIE.PA.
Although Orsted has not canceled projects in New England, it has walked away from contracts to sell offshore wind power in New York, New Jersey and Maryland over the past year.