On Friday, December 17, 2021, Massachusetts and Maryland selected a total of four offshore wind projects in their latest solicitation rounds to bring an additional 3.2 GW of new offshore wind capacity to the states.
Maryland
The Maryland Public Service Commission (Commission) awarded offshore renewable energy credits to two developers planning to expand offshore wind facilities off the coast of Ocean City: 800 MW (at $71.61/MWh) were awarded to Orsted, the developer of the Shipjack Wind II project, and 800 MW (at $54.17/MWh) were awarded to US Wind, Inc., the developer of the Momentum Wind project. The agreements were awarded in response to the Commission's call for proposals for Round 2 offshore wind projects. The Commission called on the developers to create a minimum of 10,324 direct jobs during the development, construction and operating phases of the projects; commit to certain goals to engage small, local and minority businesses; pass 80 percent of any construction costs savings to ratepayers; and contribute $6 million each to the Maryland Offshore Wind Business Development Fund. Each agreement carries a 20-year term from the date of entering operation. The credits will support the next phase of the developers' respective projects as they seek to expand.
Massachusetts
On the same day, Massachusetts completed its largest solicitation, awarding approximately 1200 MW to Avangrid Renewables and Copenhagen Infrastructure Partners, the joint developers of the Commonwealth Wind project, and approximately 400 MW to Ocean Wind and Shell, the joint developers of the Mayflower Wind project. These were awarded in response to the state's third request for proposals for offshore wind energy projects, which included enhanced criteria for, among other things, economic evaluation of the benefits for ratepayers; the project's ability to foster employment and economic development in the commonwealth; the project's impacts on the environment and environmental justice communities; and the bidder's proposed plans to promote diversity, equity and inclusion. For both projects, the developers submitted multiple bids with MW ranges and economic development packages.
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2020. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.