12.8 C
New York
Friday, November 15, 2024

Connecticut Opens 2 GW Offshore Wind Procurement Spherical with Inflation-Adjusted Pricing Choice


The Connecticut Division of Vitality and Environmental Safety (DEEP) has issued a Request for Proposals (RFP) for two GW of offshore wind era capability. The RFP incorporates a couple of new provisions, together with an listed pricing possibility that adjusts for inflation and multi-state bids underneath the lately signed settlement with Massachusetts and Rhode Island.

The state launched the offshore wind solicitation on 27 October, with the deadline for builders to submit bids set to 31 January 2024.

As DEEP accomplished work on the draft RFP this summer season and was getting ready the ultimate model, it was anticipated that the state would supply as much as 1,196 MW of complete offshore wind capability on this spherical.

With Connecticut now procuring 2 GW of offshore wind, the full potential capability being sought by the three states that lately signed a multi-state procurement settlement – Connecticut, Massachusetts and Rhode Island – has climbed from 6 GW to six.8 GW.

Massachusetts launched its fourth and largest offshore wind solicitation to this point on 30 August, looking for 3.6 GW of recent era capability, and Rhode Island opened its offshore wind solicitation for 1.2 GW of offshore wind in October.

Rhode Island’s RFP incorporates the availability for multi-state proposals and, according to the three states’ settlement, the identical provision has been added to Connecticut’s RFP. The bidders can submit proposals to the state alone in addition to multi-state bids to Connecticut together with Massachusetts and/or Rhode Island.

The solicitation in Connecticut additionally contains a provision for pricing at a hard and fast charge or at a charge that’s listed to the worth of listed macroeconomic components and commodities and that may be mounted at a date sure sooner or later.

“This listed pricing possibility adjusts for modifications, reminiscent of inflation, which will happen after the bid due date however earlier than the challenge reaches monetary shut (i.e., when challenge prices for the developer are extra locked in) to regulate the ultimate worth up or down by not more than 15%,” DEEP states in a press launch from 27 October.

Connecticut has additionally added strong necessities for environmental and fisheries mitigation plans, following suggestions from the state’s Fee on Environmental Requirements. Underneath these stipulations, chosen bidders shall be required to supply no less than USD 5,000/MW (roughly EUR 4,735) to help regional fish and wildlife monitoring, USD 5,000/MW for wildlife mitigation funding, and USD 5,000/MW for fisheries mitigation funding.

Connecticut is ready to obtain the primary electrical energy generated by offshore wind generators in 2025, when the Revolution Wind offshore wind farm, for which Ørsted has simply made a remaining funding determination, is predicted to be totally operational. The 704 MW Revolution Wind will provide energy generated by 304 MW of its put in capability to Connecticut underneath energy buy agreements (PPAs) signed in 2018.

Within the state’s offshore wind solicitation in 2019, the Division of Vitality and Environmental Safety additionally chosen the 804 MW Park Metropolis Wind challenge, developed by Avangrid, which signed PPAs with Connecticut’s utility firms the next 12 months.

Nevertheless, as reported final month, Avangrid has terminated its PPAs for the Park Metropolis Wind offshore challenge with the Connecticut electrical distribution firms.

The developer stated it deliberate to rebid the 804 MW offshore wind challenge within the upcoming auctions.

Related Articles

Latest Articles

Verified by MonsterInsights