REM: Massachusetts approves power contracts for offshore wind farms despite developers’ objections

Massachusetts regulators have approved power purchase agreements (PPAs) for two large offshore wind farms despite the developers’ objections.

The state Department of Public Utilities (DPU) approved the 20-year PPAs for the 1.2-GW Commonwealth Wind and 1.2-GW Mayflower wind projects. Both are due to be sited off Massachusetts and are slated to come online in 2028 and 2025 respectively.

But both project developers – Avangrid and a joint venture of Shell New Energies, Engie and EDP Renewables – have protested that recent economic conditions have made the contracts too low for financial viability.

In its end of year ruling, the DPU, however, has said that the PPAs are “in the public interest” and that “the pricing terms in the PPAs are reasonable for offshore wind energy generation resources."

Both projects have PPAs with the utilities Eversource, National Grid and Unitil.

Avangrid had formally requested that the PPAs for Commonwealth should be dismissed so that it could rebid the project in the next state solicitation round, this coming April. Shell, EDP and Engie had asked the DPU in late December to delay reviewing the contracts for Mayflower.