Documents filed with the Massachusetts Department of Public Utilities show that the cost to ratepayers of electricity from the Mayflower Wind offshore windfarm will be lower even than those from Vineyard Wind project
Electricity generated by the 804-MW Mayflower Wind project will be priced at a levelised price of US$0.058/kWh (US$58/MWh) in real 2019 dollars over the term of the long-term contracts.
The department said the total price is therefore expected to be below the price of electricity acquired on the wholesale market.
When the Vineyard Wind offshore windfarm won a 2019 contract to provide power to the state, the contract was priced at US$65/MWh.
Over the life of the contract, Mayflower Wind is expected to provide an average US$0.024/kWh (in real 2019 dollars) of direct savings to ratepayers.
The contracts also require Mayflower to maximise the federal investment tax credit (ITC) for which it qualifies, and if it qualifies for an ITC in excess of 12%, the contracted price will be further reduced, providing even greater benefits to Massachusetts ratepayers.
Overall, the total direct and indirect benefits to Massachusetts ratepayers from the Mayflower Wind long-term contracts are expected to be US$0.053/kWh (in real 2019 dollars), or US$52.65/MWh, on average over the term of the contract, with total net benefits of approximately US$2.4Bn.
The project also demonstrates significant winter pricing benefits, reducing the use of fuel oil during periods of extreme gas prices.