Massachusetts recommends 1.6 GW offshore wind tenders

The Massachusetts Department of Energy Resources (DOER) is recommending the state procure an additional 1.6 GW of offshore wind.

In 2018, the State of Massachusetts has implemented the Advance Clean Energy Acts that which required DOER by July 31, 2019, to study the necessity, benefits, and costs of requiring the Electric Distributions Companies (EDCs) to conduct additional solicitations and procurements for up to 1,600 megawatts (MW) of additional offshore wind. The legislation also directed DOER to evaluate the previous 1,600 MW solicitation under Section 83C and the associated procurement process and make recommendations for any improvements.

The DOER Offshore Wind Study is the result of both extensive stakeholder outreach and quantitative energy sector modeling. Based on the analyses in our study, an additional solicitation of 1,600 MW will likely provide benefits for Massachusetts ratepayers in excess of the anticipated costs of the contracts as long as offshore wind pricing remains similar to the first 83C solicitation or continues to decline.

Based on these findings described in more detail within the study, DOER recommends and will require the Massachusetts Electric Distribution Companies to proceed with an additional 1,600 MW of offshore wind generation solicitations. The study recommends that the additional solicitations take place in 2022 and 2024 in order to strike a balance between capturing cost-effectiveness offered by later procurements while providing a steady pipeline of solicitations to spur and maintain economic development opportunities.