September 5, 2023 — GOV. MAURA HEALEY launched what she described as the region’s largest offshore wind procurement this week. “With our top academic institutions, robust workforce training programs, innovative companies, and support from every level of government – Massachusetts is all-in on offshore wind,” she said.

But what her press release failed to mention was that this procurement comes at a very risky time for offshore wind, with the industry battered by economic and supply chain challenges and developers responding by pushing for higher prices for the electricity being produced.

In July, Rhode Island’s largest utility opted not to move forward with a wind farm deal because the cost “was deemed too expensive for customers to bear.”

A new study released this week indicates the developers of four proposed New York wind farms are seeking revisions to previously approved power purchase agreements that would boost the price anywhere from 27 percent to 66 percent, with a weighted average increase across all four wind farms of 48 percent.

The study, by the New York State Energy Research and Development Authority (NYSERDA), raises questions about some aspects of the wind developers’ proposed price increases, but overall it says the market conditions that have engulfed the industry are legitimate and real.

“These market conditions, driven in large part by increased demand for raw materials, an increased demand for large-scale renewable energy caused primarily by the COVID-19 pandemic and the war in Ukraine, as well as supply chain constraints and bottlenecks, are unprecedented in recent history, outside of reasonable developer control, and were unforeseeable at the time of each bid,” the study says.

Read the full article at CommonWealth Magazine