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Jan 18 (Reuters) - Massachusetts, Connecticut and Rhode Island extended on Thursday the date bids are due in the states' next offshore wind solicitations from Jan. 31 to March 27.
Offshore wind is expected to play a critical role in U.S. President Joe Biden's and several states' plans to decarbonize the power grid and combat climate change.
But offshore wind industry had a tough time in 2023 with some developers cancelling contracts to sell power in several states because their proposed projects were no longer economic due to soaring inflation, interest rates and supply chain problems.
"Extending the schedule for our current solicitation creates additional time for developers to react to the possibility of further guidance from the IRS (U.S. Internal Revenue Service) regarding key tax credits available to offshore wind projects," Lauren Diggin, a spokeswoman at the Massachusetts Department of Energy Resources (DOER), told Reuters.
"We know the importance of capturing all available savings for Massachusetts customers, and federal tax credits are essential to lowering the price of offshore wind for our ratepayers and improving project viability for offshore wind developers," Diggin said.
Some of the companies that have canceled contracts to sell power in the U.S. Northeast and therefore have projects that could be bid in upcoming solicitations, include units of European energy firms Equinor, BP, Orsted and Avangrid, Shell, EDP Energias de Portugal and ENGIE.
Several of those companies are working together on the same projects.
In addition to Massachusetts, Connecticut and Rhode Island also extended their respective offshore wind request for proposals (RFP) schedules, which will also extend the schedule for the receipt of Multi-State Bids, Diggin said.
The three states agreed in October to jointly procure offshore wind power to help get more projects built.
Along with the extended date to submit bids, the Massachusetts DOER revised the rest of its solicitation schedule.
Under the new Massachusetts schedule, the selection of projects was moved to Aug. 7, execution of long-term contracts with the DOER was moved to Oct. 9, and the submission of long-term contracts for state Department of Public Utilities (DPU) approval was moved to Nov. 13. (Reporting by Scott DiSavino Editing by Marguerita Choy)
