Massachusetts, Connecticut and Rhode Island prolonged on Thursday the date bids are due within the states’ subsequent offshore wind solicitations from Jan. 31 to March 27.
Offshore wind is predicted to play a crucial function in U.S. President Joe Biden’s and several other states’ plans to decarbonize the facility grid and fight local weather change.
But offshore wind business had a troublesome time in 2023 with some builders cancelling contracts to promote energy in a number of states as a result of their proposed tasks have been now not financial resulting from hovering inflation, rates of interest and provide chain issues.
“Extending the schedule for our current solicitation creates additional time for developers to react to the possibility of further guidance from the IRS (U.S. Internal Revenue Service) regarding key tax credits available to offshore wind projects,” Lauren Diggin, a spokeswoman on the Massachusetts Department of Energy Resources (DOER), informed Reuters.
“We know the importance of capturing all available savings for Massachusetts customers, and federal tax credits are essential to lowering the price of offshore wind for our ratepayers and improving project viability for offshore wind developers,” Diggin stated.
Some of the businesses which have canceled contracts to promote energy within the U.S. Northeast and subsequently have tasks that could possibly be bid in upcoming solicitations, embrace models of European vitality companies Equinor, BP, Orsted and Avangrid, Shell, EDP Energias de Portugal and ENGIE.
Several of these corporations are working collectively on the identical tasks.
In addition to Massachusetts, Connecticut and Rhode Island additionally prolonged their respective offshore wind request for proposals (RFP) schedules, which may also prolong the schedule for the receipt of Multi-State Bids, Diggin stated.
The three states agreed in October to collectively procure offshore wind energy to assist get extra tasks constructed.
Along with the prolonged date to submit bids, the Massachusetts DOER revised the remainder of its solicitation schedule.
Under the brand new Massachusetts schedule, the collection of tasks was moved to Aug. 7, execution of long-term contracts with the DOER was moved to Oct. 9, and the submission of long-term contracts for state Department of Public Utilities (DPU) approval was moved to Nov. 13.
(Reuters – Reporting by Scott DiSavino; Editing by Marguerita Choy)
