Dive Brief:
- The Connecticut Department of Energy and Environmental Protection (DEEP) on July 1 issued a draft request for proposals (RFP) to procure up to 2 GW of offshore wind capacity, to begin delivering energy no later than the end of 2026.
- Bids must include a 400 MW proposal, but developers are encouraged to include "multiple sizing options" both above and below the required nameplate capacity. Winning bids will be selected by the Connecticut Public Utilities Regulatory Authority's (PURA) procurement manager, DEEP and the Office of Consumer Counsel (OCC).
- Connecticut lawmakers last month passed legislation requiring the RFP, setting the state on a path to join Massachusetts, New York and New Jersey in developing offshore renewable energy resources,
Dive Insight:
Northeast states have kicked off a race to develop offshore wind, with multiple large-scale solicitations now underway. The energy and financial potential is significant: The offshore wind industry is projected to generate almost 20 GW on the East Coast by 2030, and presents a $70 billion business opportunity, according to analysis from the University of Delaware.
Comments on Connecticut's draft RFP are due July 15, and DEEP expects to issue a final solicitation on Aug. 15. Bids will be due at the end of September, with a procurement decision announced in November.
Along with PURA, DEEP and OCC, the state's utilities and Attorney General will help in evaluating the bids. Contracts can extend no more than 20 years.
Proposals must include discussion of pertinent interconnection standards, the relevant tariffs of ISO-New England and Electric Distribution Companies, New England market rules, and other information
There news joins a flurry of recent offshore wind action.
Last month, New Jersey selected Ørsted to construct a 1.1 GW offshore wind project 15 miles off the coast of Atlantic City. The state is pursuing three solicitations to acquire 3.5 GW of offshore wind power by 2030.
In April, Massachusetts approved the state's first offshore wind contracts for 800 MW and Rhode Island regulators gave a key approval, each related to the Vineyard Wind project. And New York is currently working to procure 800 MW or more of offshore wind resources.
Connecticut's draft RFP release was hailed by the offshore wind industry.
"Coupled with the other major announcements on offshore wind projects in Massachusetts and Rhode Island this spring, it confirms the growing strength of the industry in New England," Liz Burdock, head of the Business Network for Offshore Wind, said in a statement.