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Wind Approval sought for low-cost offshore wind PPAs in Massachusetts

February 12 (Renewables Now) – The electric distribution companies (EDCs) in Massachusetts are seeking the state Department of Public Utilities’ approval of power purchase agreements (PPAs) with Mayflower Wind LLC for the output of an 804-MW offshore wind farm.

The contracts with Unitil, National Grid and Eversource Energy have terms of 20 years.

The project, developed by Shell New Energies and EDP Renewables, was the winner in Massachusetts’ second Request for Proposals (RfP) for offshore wind projects. The levelised price agreed for the wind farm’s output stands at USD 58.47 (EUR 53.6) per MWh in real 2019 dollars, according to a letter in support of the long-term power contracts by the Massachusetts Department of Energy Resources. The Mayflower wind park is projected to bring direct savings to ratepayers of USD 24/MWh in real 2019 dollars, on average, over the term of the power contracts.

The levelised price in nominal dollars for Mayflower’s power and renewable energy certificates (RECs) is USD 78 per MWh.

Massachusetts’ first offshore wind solicitation was won by Vineyard Wind, which was awarded an 800-MW project at USD 64.97 per MWh in 2017 dollars. In real 2019 dollars, this is equal to USD 67.59/MWh. The developer of that project said on Tuesday commercial operation in 2022 no longer seems possible due to a new revision of the permitting timeline for the project.

(USD 1 = EUR 0.92)

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