((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Scott DiSavino and Laila Kearney
Several offshore wind developers are poised to respond to the combined Connecticut-Massachusetts-Rhode Island RFP on Wednesday, including units of European energy companies Iberdrola
IBE.MC, Engie ENGIE.PA and Orsted ORSTED.CO.
The US offshore wind industry is booming so far in 2024, with several projects in various stages of development and construction, after a disastrous last year that saw developers cancel contracts and take around 9, $1 billion in writedowns and losses.
So far, Avangrid AGR.N and Copenhagen Infrastructure Partners’ Vineyard Offshore have confirmed to Reuters that they plan to participate in the tri-state auction for offshore wind power, which is expected to play a critical role in the US plans to decarbonize the electricity grid and combat climate change.
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, the Massachusetts, Connecticut and Rhode Island agreed in October 2023 to jointly pursue offshore wind energy to help enable new projects.
Some companies that canceled contracts to sell electricity in the northeastern United States in 2023 have indicated they have projects ready to be offered in upcoming bidding rounds. These include Avangrid, units of European energy companies BP BP.L , EDP Energias de Portugal EDP.LS and Engie.
Other companies with projects available to bid in the tri-state RFP that have not canceled power sales contracts – at least not in New England – include units of Copenhagen Infrastructure Partners and Orsted, the world’s largest offshore wind company.
Although Orsted has not canceled projects in New England, it has canceled offshore wind sales contracts in New York, New Jersey and Maryland over the past year.
Avangrid, Orsted and Engie said they would only release details of their proposals after the bid deadline on Wednesday. BP did not respond to a request for comment.
SOME PROJECTS LIKELY TO BE THE SUBJECT OF A CALL FOR TENDER
Avangrid is a unit of Spanish energy company Iberdrola which is developing the Park City (804 MW) and Commonwealth Wind (1,232 MW) projects offshore Massachusetts. Both of these projects had contracts with New England Utilities that were canceled in 2023.
Avangrid is also building the 806 megawatt (MW) Vineyard Wind 1 project offshore Massachusetts, worth approximately $4 billion, in a joint venture with Copenhagen Infrastructure Partners. The companies plan to complete the Vineyard Wind 1 project later this year. The first electricity production will take place in January 2024.
One megawatt of offshore wind power can power about 500 American homes.
Engie and EDP Renovaveis EDPR.LS are part of a joint venture called Ocean Winds that is developing the 2,400 MW SouthCoast Wind project offshore Massachusetts.
Copenhagen Infrastructure Partners’ Vineyard Offshore unit is developing the 2,143 MW Vineyard Northeast project offshore Massachusetts.
Orsted is developing the Bay State Wind (2,000 MW) and Sunrise Wind (900 MW) projects offshore Massachusetts and Rhode Island.
Orsted also operates two of four current offshore wind projects in the United States – the 29 MW Block Island project off Rhode Island and the 132 MW South Fork project off New York – and is building the 704 MW Revolution project. off the coast of Rhode Island.