
PROVIDENCE – The company behind a Massachusetts offshore wind project requesting approval to run a cable across Rhode Island is petitioning the R.I. Supreme Court to intervene and reverse a state agency decision to stall its proposed transmission line through state waters.
During its July 13 meeting, the state’s Energy Facility Siting Board voted unanimously to stay consideration on the $5 billion project until Oct. 1, 2024, and asked SouthCoast Wind to settle new power purchase agreements with utility providers.
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The joint venture comprised of Shell Renewables and Energy Solutions and Engie and EDP Renewables is still in the process of negotiating power purchase agreements on the wind farm. Formerly known as Mayflower Wind Energy LLC, the partnership still wants to develop an offshore lease area in federal waters about 30 miles south of Martha’s Vineyard, building 147 turbines to generate more than 2,400 megawatts of power for Massachusetts.
If the company does not successfully satisfy new requirements with the review board before the October deadline, “the application will be dismissed without prejudice to refile and start over, unless an extension is sought upon reasonable grounds and the board exercises its discretion to grant the extension,” according to the July 18 written order.
The order states the project currently is not financially viable and lacks purchase agreements “which would provide the revenue to support financing of the wind farm.”
In a Tuesday statement, a SouthCoast spokesperson said they are asking the high court to vacate the board decision “and instead instruct the EFSB to move forward with its review.”
SouthCoast argued that state legislation, including Rhode Island’s 2022 Affordable Clean Energy Security Act, as well as multiple studies show the region’s future offshore wind projects “will be an integral feature of the future grid in New England.”
“The SouthCoast Wind project is vital to the region’s mandated goals of reducing greenhouse gas emissions, prioritizing the development of clean energy resources, and creating economic growth,” said Rebecca Ullman, director external affairs. “A decision enabling SouthCoast Wind’s EFSB application to move forward will help ensure that Rhode Island’s goals to have 100 percent renewable energy by 2033 and become a major East Coast offshore wind hub, continue to progress.”
SouthCoast executives have previously said offshore wind industry project costs have risen between 20% and 30% due to inflation and conflicts in Ukraine that have made investors weary and hampered private financing.
In its 23-page supporting memorandum filed with the court on July 28, the company said the energy boards’ governing statute “does not require that an applicant have a power purchase agreement or any other commercial offtake arrangement in place at the time its siting application is processed as a prerequisite to a demonstration of need.”
The EFSB also “does not define project viability, but instead allows the EFSB to consider a range of factors, including indicators of development progress in assessing project viability,” it said.
(Update: Third paragraph clarified to report Clarifies SouthCoast Wind is still in the process negotiating power purchase agreements.)
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.