The Massachusetts Department of Energy Resources (DOER) and electric distribution companies have issued a request for proposals for Massachusetts’ fourth and largest offshore wind solicitation to date
The RFP will more than double the Commonwealth’s current wind power solicited compared with previous procurements, and is a key step in Governor Healey’s commitment to make Massachusetts a global leader in offshore wind. Compared with earlier solicitations, it is also more flexible, and takes the effect of inflation experienced by developers and the supply chain into account.
The RFP invites submissions for offshore wind generation of up to 3.6 GW, which represents 25% of the state’s annual electricity demand and is the largest procurement for offshore wind energy generation ever in New England. Bidders can offer proposals of between 200 MW and 2.4 GW.
Governor Healey said, “Our administration continues to build a robust, sustainable offshore wind industry, and we are excited to issue this historic RFP, the largest yet in our region.
“With this RFP, Massachusetts is continuing on our path to be a global leader in this growing industry. With our top academic institutions, robust workforce training programmes, innovative companies, and support from every level of government – Massachusetts is all-in on offshore wind.”
Lieutenant Governor Kim Driscoll said the RFP “shows our commitment to support communities as we establish Massachusetts as an offshore wind industry hub.” She said the state is seeking projects that foster economic development and create jobs.
The RFP allows for additional flexibility in proposals. To account for challenges driven by inflation and other macroeconomic trends, the RFP permits bidders to submit an alternative indexed pricing proposal intended to reduce risk to ratepayers and bidders.
The RFP provides for the potential for savings resulting from federal tax credits, and requires details on how bids would use applicable tax credits. It also allows for flexibility in the schedule if IRS programme guidance on the Inflation Reduction Act is announced late in the bid preparation timeline to allow time for bidders to incorporate the guidance and importantly, to capture as much savings for ratepayers as possible.
The RFP directs projects to demonstrate advantages to environmental justice populations and low-income ratepayers, and opportunities for diversity, equity and inclusion in workforce development. DOER will consider in its evaluation direct and indirect costs and benefits, environmental and socioeconomic impacts from siting, and diversity, equity, and inclusion plans.
In contrast with previous years, the RFP makes clear the weight given to projects with robust economic development proposals that support minority- and women-owned businesses and support for low-income workers, workers of colour, and workers from impacted environmental justice communities.
Projects must also develop an environmental and fisheries mitigation plan that considers commercial, recreational and indigenous fishing rights. To ensure low-income ratepayers can gain directly from the transition to clean energy, the RFP requires bidders to enter into agreements with DOER and the Massachusetts Clean Energy Center to provide various support for low-income ratepayers.
To ensure competition, the RFP does not limit eligibility to bid based on the bidder’s previous history of terminated contracts. However, the experience and track record of the bidder will be included in the evaluation to help ensure projects are viable and have a high likelihood of achieving commercial operation to help the Commonwealth meet its clean energy goals and reach emissions limits.
Under the RFP’s timeline, bids are due 31 January 2024. This timeline allows project developers to incorporate several emerging initiatives, including anticipated federal programme guidance on tax credits, federal grants for transmission upgrades, and additional co-ordination with regional state partners. Selection of projects will take place by 12 June 2024.
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