The developers of SouthCoast Wind want to back out of its contract to secure more funding to build its offshore wind farm.
The funding would be for building 1,200 megawatts of offshore wind power, throwing uncertainty over a majority of the already approved energy capacity in the state’s offshore wind pipeline.
The Providence Journal first reported earlier this month that SouthCoast Wind developers informed the Rhode Island Energy Facilities Siting Board about these plans. The area planned for the project is located 30 miles south of Martha’s Vineyard.
The developers concluded that the 800-megawatt project and 400-megawatt project, bids that were selected in 2019 and 2021 respectively, are no longer “financially viable” at the previously negotiated prices.
“While SouthCoast has pursued, and is open to other solutions, and even after factoring in potential tax incentives; termination, and payment of a financial penalty for termination, has become the prudent commercial course to realize the project due to material and unforeseen supply chain and financing cost increases affecting the whole offshore wind industry,” SouthCoast Wind CEO Francis Slingsby said in a statement, adding the move stemmed from “significant increase in projected capital expenditures and finance costs of our project.”
The decision is similar to that of Commonwealth Wind, which filed a motion with the state’s Department of Public Utilities last December to scrap power purchase agreements the company shared with several electric distributors. The DPU rejected the proposal, and the matter is under appeal.
Officials from both projects stated that backing out and relaunching bids in the next solicitation round this summer, if selected, can lead to more favorable financial terms.
Slingsby said SouthCoast Wind officials believe their project can deliver “more than enough” clean power for every home in Rhode Island and South Coast homes in Massachusetts, “potentially ahead of other projects in development.”
Massachusetts procured 3,200 megawatts of offshore wind power capacity through three rounds of bidding in 2017, 2019, and 2021. Commonwealth Wind and SouthCoast Wind backing out of their contracts would “cut that pipeline by three-quarters.”
–State House News Service
Wow, wonder what they will do when they start breaking down. Can’t be financially sound to have to repair the darn things.
The same things they do with nuclear, coal, and oil.
Repair the darn things.
All man made crap breaks.
Scott — I find the news that coal plants, natural gas plants, the pipelines that supply them and nuclear reactors never need maintenance or break down very refreshing . Thank you for sharing that information. This might actually change my mind.
But we agree that the windmills actually do need maintenance, and will have their share of breakdowns.
The next time I talk to the V.W project managers, I will suggest that they hire a technician or 2, and include these expenses in their budgets.
This is very similar to what happened at the Tisbury school.
The contractor agreed to build the school for 56 million, but before construction started, they essentially threatened canceled their contract unless they got 26 million more from the taxpayers.
They cited increased costs in the price of steel and labor .
So let these contractors renegotiate their pricing agreements.
I can’t help but notice that the price of my generation costs went up by about 25 % in the last 6 months. That’s the reality of this business. I would love to see the government tell the operators of natural gas plants that they had to lock in a set price for the next 25 years, regardless of the wholesale price of natural gas.
How much would the Tisbury School cost if it had been replaced when it had exceeded it’s useful life?
I am so upset that we are moving ahead with this damaging project.
1200 Mega watt turbines will have a devastating effect on the environment
Honestly, based on the numbers I am seeing in terms of clean energy contribution to RI, Mass, and CT building these enormous structures off our coast would be a heavy price to pay for so called clean energy.
Data source?
Are you concerned about the visual impact of turbines or is it the burned hydrocarbons.
And if the government set the price for the next 25 yrs, someone would most likely cry bankruptcy to wiggle out if their agreements.
We are not a Communist country.
We the People, do not allow the government to set prices, except when we do.
End this wind nonsense.
Make the Island energy independent.
Put a nuke plant in the scrub oak.
Wind isn’t a question of if.
The longer it takes to implement, the more it will cost.
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