Connecticut Governor Ned Lamont has officially withdrawn from the tri-state bid for the Vineyard Wind 2 offshore wind project, a process the state has advocated and helped establish. Instead, the state announced the procurement of grid-scale solar power and storage projects that would produce roughly the same amount of electricity as wind projects, but both wind and solar require the wind to blow and the sun to shine. Therefore, it is not a reliable power generation source. This initiative is a joint effort between Connecticut, Massachusetts, and Rhode Island, and is the first collaboration of its kind in the United States. Governor Ned Lamont had expressed concern about moving forward with the three states’ requests for proposals (RFPs), primarily because of the potential cost to consumers. Connecticut’s home electricity rates are already among the highest in the nation, second only to Hawaii, which is expensive due to its geographic isolation in the Pacific Ocean.
The state of Connecticut announced plans to move forward with three solar power projects in its first zero-carbon procurement deal. One is a 200-megawatt project in Connecticut, two projects in Maine totaling 318 megawatts, and 200 megawatts of storage capacity associated with the projects to be built. An undisclosed abandoned brownfield site in Connecticut. The state will negotiate long-term contracts directly with two major power companies, Eversource and United Illuminating, before the Public Utilities Regulatory Authority (PURA) will review and approve the contracts.
Meanwhile, President-elect Donald Trump announced his intention to cancel all offshore wind projects as soon as he takes office, citing concerns about high costs and inconsistent performance. During his first term, permits for offshore wind were delayed as studies assessed the impacts of offshore wind on fisheries. Given this, the incoming Trump administration is expected to further delay or suspend permits for offshore wind, potentially reversing progress made under the Biden-Harris administration.
President Biden has set an ambitious goal of 30 gigawatts of offshore wind capacity by 2030, and has already approved more than 16 gigawatts in 11 projects, the latest in New England. This is a project. The Biden administration also expanded offshore wind leasing operations across the East Coast, in addition to the Gulf of Mexico and Pacific coasts. However, challenges remain, as evidenced by the cancellation of a floating offshore wind bid in Oregon and the receipt of one bid for an offshore wind lease in the Gulf of Mexico.
Offshore wind has been a growing industry in Europe for the past 20 years, but the situation is more difficult in the United States due to deeper water and a more dangerous environment. This sector is also facing difficulties in Europe. For example, a recent lease auction in Denmark had no participants, and the government’s efforts to solicit bids for subsidy-free wind power projects in three North Sea regions received no bids. The outlook for other subsidy-free auctions in the Baltic and Kattegat Seas scheduled for 2025 is also uncertain. The economic viability of offshore wind remains highly dependent on government subsidies, especially in the face of rising costs due to inflation, rising interest rates, and supply chain disruptions caused by the COVID-19 pandemic. It’s worth noting that Warren Buffett has said that wind energy is not viable without tax credits that benefit his company.
background
The multistate offshore wind initiative, which includes Massachusetts, Connecticut, and Rhode Island, was conceived earlier this year in response to challenges facing offshore wind developers on the East Coast. Rising costs due to the COVID-19 pandemic, the war in Ukraine, and subsequent inflation have led many developers to decide that existing contracts are not economically viable. As a result, some developers, including Avangrid, withdrew from the deal. Avangrid has canceled an 804-megawatt contract in Connecticut called Park City Wind that included job creation and port development in Bridgeport. It also withdrew from a 1,200-megawatt contract in Massachusetts known as Commonwealth Wind.
In response to these changes, a new call for tenders for new projects has been launched. After Labor Day, Massachusetts and Rhode Island announced their choices, while Connecticut took additional time to consider its proposal. Massachusetts has decided to move forward with the previously approved Park City wind project, as it is the most advanced in terms of permitting. The state also selected a rebid project called South Coast Wind, totaling 1,087 megawatts. Rhode Island selected a small 200-megawatt project from South Coast Wind.
Massachusetts has also chosen to advance 800 megawatts from the 1,200 megawatt Vineyard Wind 2 project. However, because the project is further from the coast, more expensive cabling will be required and the entire project will need to be developed to be economically viable. As a result, the project’s developer, Vineyard Offshore, withdrew as the state of Connecticut decided not to participate in the remaining 400 megawatts of the project.
As a result of Connecticut’s withdrawal, the state has only one active offshore wind project remaining, the 300-megawatt portion of Revolution Wind, which is currently under construction. In 2019, the Connecticut Legislature authorized up to 2,000 megawatts of offshore wind power, but no additional projects have been approved by the state at this time.
conclusion
Governor Lamont is still pursuing “green energy” in Connecticut, but with projects that are more affordable than offshore wind, such as solar and onshore wind projects in Maine. The state is also experimenting with a small portion of offshore wind power in its participation in the Revolution Wind project. Connecticut’s withdrawal from Vineyard Wind 2 made the economy unsustainable, forcing the project’s developers to drop out. President Biden has announced a goal of 30 gigawatts of offshore wind by 2030 and has authorized more than 16 gigawatts, but offshore wind, like solar and onshore wind, is unreliable and very expensive. Therefore, the incoming Trump administration will likely try to stop the permit. Costs more than three times as much as onshore wind power.
