The CEOs of Avangrid and SouthCoast Wind reacted with apparent relief on Tuesday, as the state issued a request for proposals for offshore wind. The draft RFP advances the bidding process for the state’s fourth round of contracts.
“We're very pleased,” said Avangrid CEO Pedro Azagra, speaking at a Cape Cod Blue Economy Foundation conference in Bourne. “I think it allows us, hopefully, to participate.”
The draft does nothing to block either of the developers from bidding, even though Commonwealth Wind — of which Avangrid is the parent company — says it can no longer build a wind farm under the terms of its contracts in the previous round because of inflationary cost increases.
And unlike in the past, the draft RFP allows bidders to index their prices to inflation.
Commonwealth Wind is suing the Massachusetts Department of Public Utilities in an effort to be released from its third-round contracts with electric companies, saying the project isn’t viable because of price increases due to inflation, interest rates, supply chain problems, and the war in Ukraine.
SouthCoast Wind (formerly Mayflower Wind) has echoed those economic complaints but has stopped short of saying its project isn’t viable.
Azagra said Avangrid intends to bid.
“I think we're very committed to continue the projects,” he said. “And we have not stopped, so hopefully we can participate, bid, and just get the right economics.”
Francis Slingsby, CEO of SouthCoast Wind, said his company plans to bid as well.
“It's hot off the press,” he said of the draft RFP in an interview at the conference. “We're very excited. … We're analyzing this closely, and we look forward to working with the administration to make sure we put in a very, very compelling offer.”
SouthCoast Wind is a joint venture between Shell and a Madrid-based company, Ocean Winds.
Electric companies and the Healey administration — represented by the Department of Energy Resources — filed the draft RFP with the Department of Public Utilities. It calls for procurement of up to 3,600 megawatts of offshore wind power.
The administration said that represents a quarter of the state’s annual demand for electricity.
This bid cycle is identified in state documents as “83C IV.” It is the fourth round of procurement authorized under Section 83C of the Green Communities Act.
Azagra and Slingsby gave remarks at Massachusetts Maritime Academy on Tuesday as part of the Big Blue Conference, hosted by the Blue Economy Foundation, an initiative of the Cape Cod Chamber of Commerce.
Sectors of the “blue economy” rely on the region’s water and other coastal resources. They include fishing, shellfishing, tourism, and offshore wind, along with other industries that benefit from economic activity around the water.
Organizers hope to make the conference an annual event. It aims to raise awareness of the blue economy and help people in the sector connect with one another, said Katy Acheson, economic development director at the Cape Cod Chamber of Commerce.
“The ambition here is really to start conversations, introduce people to one another, and bring more light to the Cape Cod blue economy and the surrounding economy partners,” she said.
