The Maryland Public Service Commission has approved US Wind’s rebid application and awarded the company additional offshore wind renewable energy credits (ORECs) to support the buildout of its projects off the Maryland coast.
In what is known as a Revised Round 2, US Wind will construct a 1710MW project developed in four phases that will consist of 114 15MW turbines.
As part of its proposed project, US Wind reaffirmed their plans to build Sparrows Point Steel, an offshore wind turbine monopile facility in Baltimore Harbor.
As part of the agreement, US Wind also committed to using cables from Hellenic Cables’ upcoming facility in South Baltimore, as well as steel from Crystal Steel Fabricators in Federalsburg, on Maryland’s Eastern Shore.
On May 9, 2024, Governor Wes Moore signed into law House Bill 1296, which required the Commission to open an offshore wind proceeding limited to evaluating revised project schedules, sizes, or pricing for a previously approved Round 2 offshore wind project and to review similar requests for Round 1 offshore wind projects.
US Wind was the only applicant in this round.
In its review of US Wind’s application, the Commission evaluated a number of criteria to determine whether the proposal was in the public interest, as well as an analysis of the bill impacts to Maryland utility ratepayers.
Frederick H Hoover, chair of the Public Service Commission, said: “Our decision will support the expansion of renewable energy generation in Maryland, and advance the development of a project which will produce significant economic, environmental, and health benefits to our state, including assuring our future energy needs.
“While questions have arisen regarding offshore wind development in a number of places, the Commission’s analysis through the independent consultant and our hearingsdemonstrated the importance of this project in providing emission-free energy, jobs, economic opportunity and cost benefits to Maryland ratepayers.”
In the first two offshore wind rounds (2017 and 2021), US Wind was awarded offshore wind renewable energy credits (ORECs) to support projects of more than 1056MW.
Phase 1 has an expected commercial operation date (COD) of 2029 while Phases 2, 3, and 4 have an anticipated COD of December 2030, with the first year of the respective OREC schedules beginning in January 2031.
This new combined project absorbs the capacity left over when, in January of 2024, Skipjack Energy relinquished the ORECs it had been awarded in the first two rounds.
The Commission finds that the project meets the ratepayer impact tests required for Round 1 and Round 2 by not exceeding the statutory thresholds of $1.50 per month and $0.88 per month for an average residential customer for Rounds 1 and 2 respectively; and 1.5% per year and 0.9% per year for an average non-residential customer for Rounds 1 and 2 respectively.