Approval Granted for New England Offshore Wind Farm Construction

New England

The United States has given its final approval for an offshore wind project in New England, set to deliver renewable energy to Connecticut, Massachusetts, and Rhode Island through electricity and offshore renewable energy certificates (ORECs).

On Monday, the Bureau of Ocean Energy Management (BOEM) announced the approval of Avangrid's construction and operations plan for the New England Wind project, which will be located south of Martha's Vineyard, Massachusetts. This milestone marks the completion of federal reviews for the project, which has the potential to generate up to 2,600MW, enough to power over 900,000 households according to BOEM.

Avangrid, a subsidiary of the Spanish utility Iberdrola, plans to develop the project in phases known as New England Wind 1 and New England Wind 2, with operations for the initial phase scheduled to begin in 2029.

In April, BOEM endorsed the project design, which includes 125-129 turbines, aligning closely with Avangrid's proposals. In response to a joint offshore wind solicitation from Connecticut, Massachusetts, and Rhode Island in March, Avangrid submitted multiple bids anticipating OREC contracts for the New England Wind project. Avangrid proposed 791MW from the New England Wind 1 project and an additional 1,080MW from the New England Wind 2 system in combined offers to the three states, alongside individual bids tailored to each state's requirements.

Formerly known as Park City Wind and Commonwealth Wind, New England Wind 1 and 2 were previously contracted with Connecticut and Massachusetts, respectively. Avangrid recently renegotiated these agreements, citing challenges such as inflation, interest rate adjustments, and supply chain disruptions, which led to payments totaling $16.1 million to Connecticut utilities and $48 million to Massachusetts' electricity distributors to terminate the original contracts.

This development marks a significant step forward in offshore wind energy in the United States, reinforcing commitments to sustainable energy solutions across the New England region.