((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Scott DiSavino
Massachusetts, Connecticut and Rhode Island on Thursday postponed the bidding date for upcoming offshore wind energy tenders from January 31 to March 27.
Offshore wind is expected to play a critical role in plans by U.S. President Joe Biden and several states to decarbonize the power grid and combat climate change.
But the offshore wind sector faced a tough time in 2023, with some developers canceling power sales contracts in several states because their projects were no longer profitable due to soaring inflation, interest rates and supply chain issues.
“Extending the timeline of our current RFP gives developers more time to respond to the possibility of new guidance from the US Internal Revenue Service (IRS) regarding key tax credits available to offshore wind projects,” Lauren Diggin, spokesperson for the Massachusetts Department of Energy Resources (DOER), told Reuters.
“We know it’s important to achieve every savings possible for Massachusetts customers, and federal tax credits are essential to reducing the price of offshore wind for our taxpayers and improving the viability of projects for offshore wind developers,” Ms Diggin said.
Among the companies that have canceled power sales contracts in the northeastern United States and therefore have projects likely to go to tender are units of European energy companies Equinor EQNR .OL, BP BP.L, Orsted
ORSTED.CO and Avangrid AGR.N, Shell SHEL.L, EDP Energias de Portugal EDP.LS and ENGIE
ENGIE.PA.
Several of these companies work together on the same projects.
In addition to Massachusetts, Connecticut and Rhode Island also extended their respective offshore wind requests for proposals (RFPs), which will also extend the timeline for receiving multistate bids, Diggin said.
The three states agreed in October to jointly purchase offshore wind power to help build more projects.
In addition to extending the bid submission date, the Massachusetts Department of Energy has revised the remainder of its bidding schedule.
Under the new Massachusetts schedule, project selection was moved forward to August 7, execution of long-term contracts with DOER to October 9, and submission of long-term contracts to the Department of Public Utilities for approval. State (DPU) as of November 13.