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As tri-state offshore wind auction moves forward, CT decides to delay decision

Wind turbine blades are lined up at the Connecticut State Pier in New London where the turbines are staged and assembled before being shipped to their offshore location in the sound. Connecticut Department of Energy and Environmental Protection (DEEP) Commissioner Katie Dykes said during a press conference at the Connecticut State Pier in New London, Wednesday, August 07, 2024, that once it’s completed, the 2,400 megawatts of offshore wind will be a significant source of clean energy. The federal government is giving the region $389 million to improve the electrical grid and part of that money will go toward this wind project.
Mark Mirko
/
Connecticut Public
Wind turbine blades are lined up at the Connecticut State Pier in New London where the turbines are staged and assembled before being shipped to their offshore location in the sound. Connecticut Department of Energy and Environmental Protection (DEEP) Commissioner Katie Dykes said during a press conference at the Connecticut State Pier in New London, Wednesday, August 07, 2024, that once it’s completed, the 2,400 megawatts of offshore wind will be a significant source of clean energy. The federal government is giving the region $389 million to improve the electrical grid and part of that money will go toward this wind project.

Connecticut surprised some environmentalists on Friday, when Massachusetts and Rhode Island were the only states to announce which new offshore wind turbine projects they would buy electricity from, if the projects are constructed.

“The evaluation of project bids remains underway in Connecticut and we will announce a final decision in our solicitation at a future date,” a Connecticut Department of Energy and Environmental Protection spokesperson said in a statement.

Connecticut announced roughly one year ago it would join with Massachusetts and Rhode Island in a tri-state request for new offshore wind projects.

The idea was for the three states to band together to make offshore wind projects, which have faced supply-chain delays and challenges from inflation, cheaper and more viable.

Several bidders expressed interest in the tri-state collaborative, including Avangrid, parent company of United Illuminating. In 2023, Avangrid announced it was pulling the plug on Connecticut’s Park City Wind project, citing costs, with an intent to rebid it at a later date.

Decision procures less power than originally hoped, but more could still come

Friday’s announcement from Rhode Island and Massachusetts was for 2,878 megawatts of electricity. As WBUR notes, that total was considerably less than the 6,800 megawatts originally intended by the procurement.

Connecticut’s most recent delay isn’t the project’s first. In August, the three states announced they would hold off on selecting offshore wind projects for the tri-state project by another month following a $389 million grant from the Department of Energy.

Now, Friday’s decision means Connecticut will be delaying that decision even further.

“The Connecticut Department of Energy and Environmental Protection congratulates our sister New England states of Massachusetts and Rhode Island on the announcement today of their selection decision in response to our states’ coordinated requests for proposals for new offshore wind,” Connecticut state energy officials said.

It's not immediately clear when Connecticut is expected to make an annoucement on which projects it will select as part of the tri-state wind procurement.

Decision blows disappointment, peppered with optimism, among environmentalists

Some advocacy groups, represented by the CT Coalition for Climate Action, say the lack of action means Connecticut is falling behind.

“Until recently, Connecticut had been a leader on climate initiatives, air quality and renewable energy. Sadly, our neighbors have taken the lead, prioritizing solar and wind and making needed infrastructure investments for the future,” the group shared in a statement.

The coalition also cited a study that found offshore wind can help keep electric rates from rising, at a time when Connecticut Gov. Ned Lamont and state Republican lawmakers are going head-to-head over how to tackle relief for customers after recent electric rate hikes.

“Our state now has an opportunity to again position itself as a leader with the deployment of offshore wind technology in the region,” CT Coalition for Climate Action said. “It would be ill-advised to delay a decision on Offshore Wind because of the current debate on electric rates.”

Lamont’s office did not immediately return a request for comment on whether the current electric rate debates factored into Connecticut declining to announce a proposal from the recent wind bids.

Charles Rothenberger, a lawyer with the environmental group Save the Sound, said it's mildly disappointing that Connecticut did not make similar selections on Sept. 6.

“I would have liked to have seen all three states roll out their decisions at the same time certainly,” Rothenberger said. “But I'm not going to read too much into the fact that Connecticut is taking a bit more time to review those proposals.”

Rothenberger said throughout this process, Connecticut has made it quite clear that it is not following anybody else's timeline.

“They have expressly said they are not necessarily going to be announcing at the same time that Massachusetts or Rhode Island does,” Rothenberger said.

Rothenberger said when the states select offshore wind agreements -— and set prices they will pay for the electricity generated -— it makes it economically feasible to build the wind farms.

Delay comes as residents struggle with high summer bills

Meanwhile, Connecticut residents are struggling with some of the highest electric rates in the nation. Its two main utilities, United Illuminating and Eversource, don’t produce their own power and instead purchase electricity from other generators.

Recent summer rate hikes shocked many customers and mainly stem from a state-mandated contract with the Millstone nuclear power plant. A surcharge to help cover hardship expenses related to a program to prevent utility shut offs during the COVID-19 pandemic and a surcharge to help launch an electric-vehicle charging program have also contributed to recent rate hikes.

Some advocates argued wind energy could be part of the plan to provide relief to ratepayers in the long run.

“We must continue to work toward long-term policies that stem energy price volatility for residents and businesses alike,” CT Coalition for Climate Action said. “Accessing fixed priced, clean energy like offshore wind, helps move us closer to that goal.”

Matt Dwyer, Patrick Skahill and Cassandra Basler contributed to this report.