In a historic move, the governors of Massachusetts, Connecticut, and Rhode Island announced on Wednesday a pioneering multi-state agreement for future wind energy projects. This landmark collaboration marks the nation’s first-ever alliance of its kind, with the potential to reshape how states acquire clean energy.
The primary objective of this partnership is to enable the three states to secure clean energy sources at more competitive and cost-effective rates, as outlined by Connecticut Governor Ned Lamont. The focus on offshore wind projects is a crucial step towards fulfilling the ambitious climate change goals set by each of these states.
Governor Lamont, a Democrat, emphasized, “We can go further when we work together,” underscoring the power of collective efforts to drive clean energy initiatives.
The unveiling of this groundbreaking multi-state agreement coincides with ongoing efforts by offshore wind developers to revisit contracts signed in 2019 and 2020, which were based on lower cost estimates. These reevaluations take into account factors such as the rising costs of materials like steel for wind turbines and increased interest rates.
In a recent development, electric utility company Avangrid decided to withdraw from Connecticut’s largest offshore wind project, Park City Wind, citing the current terms as “unfinanceable.” In response, Governor Lamont confirmed that the state intends to reopen bids for the project in early 2024.
Under the terms of this new agreement, energy developers have until January to submit proposals for consideration in multi-state offshore wind projects capable of generating up to 6,000 megawatts. In an innovative approach, any combination of two or three states will have the opportunity to select a multi-state proposal and equitably share the resulting energy resources.
This collaborative endeavor not only underscores the states’ dedication to advancing sustainable energy but also offers a potential model for other regions across the country to follow in their pursuit of clean and affordable energy solutions.