OAK BLUFFS – Offshore wind is meant to be a critical tool in the effort to reach net-zero greenhouse gas emissions, but leaders are worried about rising costs.
Six East Coast governors including Governor Maura Healey have sent a letter to President Joe Biden outlining their concerns that ratepayers won’t be able to absorb rising development costs for wind projects, many of which traced back to supply chain issues related to the war in Ukraine and ongoing inflation.
In the letter, the governors call for updated clean energy tax credit guidance, the establishment of a revenue sharing program, and streamlined clean energy permitting to help keep the burgeoning industry on-track.
The move follows recent contract terminations by local projects SouthCoast Wind and Commonwealth Wind, which paid out millions to utility companies after contract negotiations fell through.
Both developers said previously agreed upon prices were not going to be financially viable in the current economic climate and attempted to renegotiate. Both plan to rebid during the next state solicitation.
Commonwealth Wind’s sister project Vineyard Wind, both developments of Avangrid, is still on-track to begin producing power next month, first a smaller scale before ramping up production.
Wind turbine installation began for the 806-megawatt project 30 miles south of Martha’s Vineyard this month. It will generate enough power for over 400,000 homes and businesses.
About Grady Culhane
