February 8 (Renewables Now) - Ørsted A/S’ (CPH:ORSTED) Revolution Wind project in federal waters off New England will provide Rhode Island with electricity at prices "far lower than anticipated,” the state government said on Thursday as it announced that a contract for the project has been filed for approval.
The wind farm, to be installed in federal waters off Rhode Island and Massachusetts, will deliver energy at a real levelised price of just over USD 0.07 (EUR 0.062) per kWh over the 20-year duration of the contract with National Grid Rhode Island. The power purchase agreement (PPA) for 400 MW of capacity has been submitted for approval with the Rhode Island Public Utilities Commission (PUC) and will now undergo a 120-day review, Rhode Island Governor Gina Raimondo announced.
Once all permits are in place, Denmark-based Ørsted could start building the wind farm as early as 2020, with potential commissioning seen by 2023. To be installed on a federal lease site between Montauk, New York, and Martha’s Vineyard in Massachusetts, around 15 miles (24km) south of the Rhode Island coast, the plant will deliver electricity for over 270,000 Rhode Island homes per year, equal to almost one-quarter of all electricity the state consumes.
Originally developed by Deepwater Wind, the 700-MW Revolution Wind project has a PPA for 200 MW in Connecticut with local utilities Eversource and United Illuminating and last month secured regulatory nod to negotiate an off-take deal for an additional 100 MW in the state. In Rhode Island, it was selected through a competitive procurement process in May 2018.
According to Governor Raimondo’s statement, Ørsted will not seek or get any state tax incentives from Rhode Island. Its local investment in the state is estimated at USD 250 million.
Rhode Island is home to America's first offshore wind farm, the 30-MW Block Island off Rhode Island, which went live in December 2016.
(USD 1.0 = EUR 0.882)