Massachusetts EDCs Selects Offshore Wind Project For 800 MW Procurement
October 31,2019
Mayflower Wind was selected by the Massachusetts electric distribution companies to move forward to contract negotiations to provide 804 megawatts (MW) of offshore wind to Massachusetts as part of the energy procurement authorized by An Act Relative to Energy Diversity.
Mayflower Wind is a joint venture of Shell New Energies and EDPR Offshore North America
As previously reported, the statute governing the offshore wind procurements provides discretion to the EDCs concerning the disposition of power and related products from the procurement
A distribution company may elect to use any energy purchased under such contracts for sale to its customers and may elect to retain renewable energy certificates to meet the applicable annual renewable portfolio standard requirements. If the energy and renewable energy certificates are not so used, the distribution companies shall sell the purchased energy into the wholesale market and, provided that the department of energy resources has not notified the distribution company that the renewable energy certificates should be retained to facilitate reaching emission reduction targets pursuant to chapter 298 of the acts of 2008 or chapter 21N of the General Laws, shall sell the purchased renewable energy certificates to minimize the costs to ratepayers under the contract; provided, however, that the department of energy resources shall conduct periodic reviews to determine the impact on the energy and renewable energy certificate markets of the disposition of energy and renewable energy certificates under this section.
If a distribution company sells the purchased energy into the wholesale market and sells the renewable energy certificates, the distribution company shall net the cost of payments made to projects under the long-term contracts against the net proceeds obtained from the sale of energy and renewable energy certificates, and the difference shall be credited or charged to all distribution customers through a uniform fully reconciling annual factor in distribution rates, subject to review and approval of the department of public utilities.
The Mayflower Wind contract brings the amount of offshore wind procured under this legislation to approximately 1,600 MW,
The Mayflower Wind Project 2, 804 MW "Low Cost Energy" bid was selected for contract negotiations based on criteria established under a Request for Proposal (RFP) including a proposed timetable and method of solicitation previously subject to public comment, and reviewed and approved by the Department of Public Utilities.
By selecting Mayflower Wind, the Electric Distribution Companies and the Commonwealth have reached the initial procurement target of approximately 1,600 MW from the Energy Diversity Act of 2016, which added a new Section 83C to the Green Communities Act. The first procurement resulted in executed and approved contracts with the Vineyard Wind 1 project for 800 MW, one of the first large procurements in the United States of offshore wind. The combined energy output of the selected projects under Section 83C represents approximately 12 percent of total Massachusetts annual energy demand.
The final acceptance of the bid and award of contract is conditional upon successful contract negotiations between the parties and the regulatory approval at the Massachusetts Department of Public Utilities (DPU).