Connecticut and Rhode Island have opened bid solicitations for 2 GW and 1.2 GW of offshore wind, respectively, after announcing a multistate memorandum of understanding with Massachusetts earlier in October.
Massachusetts is already underway with its fourth offshore wind solicitation seeking 3.6 GW, having issued a final request for proposals in August. The three states on Oct. 3 signed a landmark agreement to coordinate offshore wind procurement.
Rhode Island Energy issued an offshore wind RFP Oct. 13, and Connecticut issued one Friday. The final solicitation from each state includes an aligned due date of Jan. 31 for bids.
“The three-state agreement creates a pathway for a potential coordinated selection of competitive offshore wind bids as each state solicits offshore wind energy generation through their respective state procurements,” said a release from Connecticut’s Department of Energy and Environmental Protection, or DEEP.
The final Connecticut RFP also includes a provision allowing bidders to submit pricing at a rate indexed to the price of “listed macroeconomic factors and commodities and that would be fixed at a date certain in the future,” allowing prices to adjust for factors like inflation.
The addition of this provision comes as some offshore wind developers, struggling to advance projects in the face of inflation and other challenges, are asking states to allow them to exit and rebid their power purchase agreements.
The indexed pricing option adjusts for changes that might occur after the bid due date but before the project reaches final close, and allows for the final price to be adjusted either up or down by no more than 15%.
“Additionally, the RFP allows bidders to submit bids to Connecticut alone as well as multi-state bids to Connecticut along with Massachusetts and/or Rhode Island,” said DEEP’s Oct. 27 release.
All three states are aiming to have the developers execute long-term contracts for the purchase of offshore wind energy in Q3 2024. Rhode Island has set an anticipated date of Sept. 27, and Massachusetts has set one of Aug. 14, while Connecticut just lists Q3 2024.