Massachusetts delayed finalizing contracts for a pair of offshore wind projects this week, adding to the uncertainty facing the industry as President-elect Donald Trump returns to the White House.
The decision marks the second time state officials and local utilities have extended negotiations to buy power from a pair of wind projects capable of powering nearly a million homes. Massachusetts punted a decision on the contracts for New England Wind 1 and SouthCoast Wind in November. In a filing with state utility regulators, a team of local utilities and state officials said they now expect the contracts to be finalized by March 31.
“The utilities and developers are working hard to negotiate and memorialize the bids in binding contracts. These contract negotiations are multifaceted and the parties need additional time,” said Lauren Diggin, a spokesperson for the Massachusetts Department of Energy Resources. “Locally generated clean energy like offshore wind is essential to meet our growing electricity demand, and these projects will bring thousands of good paying jobs and billions of dollars in economic benefits for Massachusetts.”
The projects are a barometer of whether the industry will continue to grow under Trump, an outspoken wind critic. Both projects were forced to cancel initial deals to sell their power due to the effect of inflation on construction costs. Each one has received permits from the Biden administration to be built in federal waters. The move to extend negotiations follows Connecticut’s decision to abandon a 1,200-megawatt project with Massachusetts. Vineyard Wind 2 announced it would not move forward as a result.