Massachusetts Offshore Wind Billion Dollar Blunder

by Frank Haggerty

2 hours ago

SouthCoast Wind and Commonwealth Wind paid approximately $108 million in penalties to terminate their original 2022 Power Purchase Agreements. 
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Offshore wind power purchase agreements (PPAs) in Massachusetts are long-term contracts between electric distribution companies and offshore wind developers to buy electricity and Renewable Energy Certificates (RECs) at fixed, negotiated prices. 
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  1. August 14, 2024: The original target date
  2. November 7/8, 2024: First major extension
  3. January 15, 2025: Second postponement
  4. March 31, 2025: Third postponement
  5. June 30, 2025: Fourth postponement
  6. December 31, 2025: Fifth postponement
  7. June 30, 2026: Current target following the sixth postponement in December 2026
  8. ??
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Massachusetts has legally binding goals to achieve net-zero greenhouse gas emissions, with interim targets to reduce emissions by at least 50% by 2030. 
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The Massachusetts 2021 Climate Act establishes the 2030 target as a legal requirement. 
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The Massachusetts evaluation team for the 83C Round 4 solicitation (SouthCoast Wind and New England Wind 1) is targeting the completion of contract negotiations and execution of Power Purchase Agreements (PPAs) on or before June 30, 2026
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Massachusetts is unlikely to meet its 2022 original, ambitious offshore wind Power Purchase Agreement (PPA) goals by June 30, 2026

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