The Massachusetts Department of Public Utilities (DPU) has approved long-term contracts between the Commonwealth’s electric distribution companies and the 804MW Mayflower Wind offshore project off the US east coast.
Mayflower Wind was selected for contract negotiation in October 2019 based on criteria established under a request for proposals (RFP) that was previously subject to public comment, and approved by the DPU after review by an independent evaluator on 17 May 2019.
The wind farm is expected to provide approximately 0.1% to 1.8% savings on customer’s monthly energy bills, all other bill impacts remaining equal, at a total levelised price of 7.8 cents/kilowatt hour in nominal dollars, DPU said.
It said that, overall, the total net benefits, both direct and indirect, to Massachusetts ratepayers over the life of the contract are expected to be approximately $2.4bn.
Governor Charlie Baker (pictured) said: “The approval of these contracts furthers the Commonwealth’s development of an offshore wind industry that will create local jobs, spur economic development and provide Massachusetts ratepayers with clean, affordable and resilient energy.”
Energy and Environmental Affairs Secretary Kathleen Theoharides said: “This approval ensures that the Commonwealth’s second offshore wind project offering cost-effective and locally produced clean energy can move forward.
“The Baker-Polito Administration’s efforts to grow the Commonwealth’s clean energy portfolio is key to achieving net zero emissions by 2050.”
Criteria used in the evaluation of the bids included an economic evaluation of the benefits for ratepayers, the project’s ability to provide enhanced electric reliability, foster employment and economic development in the Commonwealth, and the project’s mitigation of environmental impacts.
The DPU’s order approved the selection and found that these contracts are cost-effective as well as in the public interest.
Additionally, the contracts include a $77.5m commitment to support the offshore wind industry, scientific research, and economic development in Massachusetts and the south coast.
This includes $55m to MassCEC for the creation of an Offshore Wind Development Fund that will fund port and infrastructure upgrades, workforce training, innovation seed funding, and applied research.
A further $10m will go to marine science and fisheries research, $7.5m for port upgrades and $5m for low-income strategic electrification with Cape Light Compact.