Massachusetts commits to 1.6 GW of offshore wind, Dong hails bill

The Massachusetts State Legislature today adopted an energy bill that calls for utilities to sign contracts for 1.6 GW of offshore wind power.

Massachusetts lawmakers reached agreement on a compromise energy bill on Sunday night before adjourning from formal sessions for the year. The bill requires utilities to enter into long-term contracts for offshore wind energy generation representing 1.6 GW of aggregate nameplate capacity by June 30, 2027. The bill also supports the purchase of hydropower and other renewables.

Dong Energy A/S (CPH:DENERG), the Danish utility which is a significant offshore wind player, hailed the news. The company has secured a lease area off the coast of Martha's Vineyard in the state. The project is dubbed Bay State Wind and proposes the construction of an offshore wind farm with a capacity of up to 1 GW.

Dong said the bill opened the door to the US commercial offshore wind market as it was the first legislation of its kind with a specific carve out for offshore wind at a scale required to create a viable market in the country.

"The offshore wind industry has the potential to create thousands of local jobs up and down the East Coast, and Massachusetts’ has positioned itself to be the leader in making the industry a reality," said Thomas Brostrom, general manager of North America, Dong Energy Wind Power.

Dong said that while there were several more steps in the regulatory process before construction can begin on its Massachusetts project, a dedicated commitment for offshore wind was a critical step in the process. The company has a second offshore wind project in the US, off the coast of New Jersey.

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