ENERGYWIRE | Massachusetts activated a pair of long-term power contracts for Vineyard Wind on Monday, in a sign that the country’s first offshore wind project is nearing completion.
The decision is a major milestone for a project that was rocked by the Trump administration’s move to halt construction in December and a turbine supplier’s recent threat to walk away. In both cases, court rulings in favor of Vineyard Wind kept the $4.5 billion project moving forward. Construction was completed in March, and the project is now testing and bringing online turbines.
Massachusetts leaders said a pair of 20-year power purchase agreements would save Bay State consumers $1.4 billion over their lifetime. Vineyard Wind — which was selling power on New England’s wholesale electricity market before Monday — helped prevent prices from going even higher this winter, when frigid winter temperatures sent electricity prices skyrocketing, state leaders said.
At 800 megawatts, Vineyard Wind is the largest offshore wind project built in the U.S. to date. Each of its two contracts with Massachusetts utilities is for 400 megawatts of electricity. One starts at $74 per megawatt-hour and increases 2.5 percent annually. The other starts at $65 per MWh and increases by 2.5 percent annually.