Shell and Ocean Winds 804MW Mayflower Wind offshore wind farm should deliver cheaper than expected electricity to Massachusetts consumers because of an increase and extension to the federal investment tax credit for the sector.
Mayflower Wind said that in October 2019 Massachusetts electric distribution companies chose the project at a $77.76 a megawattt-hour (MWh), which now should drop to $70.26/MWh as a result of the change in federal law.
The fall is due to Mayflower committing to rebate the value of the federal tax credits, it said.
The price reduction is likely to result in savings to customers of the distribution companies of about $25m a year, the developer said.
The tax credit changes were part of a US Stimulus Bill signed into law at the end of last year.
The contracts with the distribution companies have been approved by the Massachusetts Department of Public Utilities, however, that approval is currently on hold pending consideration of a motion filed by the Attorney General’s Office to reconsider the compensation of the utilities.
Mayflower Wind chief executive Michael Brown said: “Mayflower Wind creates environmental and economic value.
“We are proud of this consumer savings provision of our bid.
“The work we have done to embrace the federal tax credit program is putting us on a trajectory to lower our price and increase our value to customers.
“We look forward to speedy resolution of the Attorney General’s pending motion and concluding the process of locking in this benefit to the customers.”