America’s offshore wind industry faces a big test in New England this week.
Wednesday is the deadline for developers to submit bids for new offshore wind projects to Connecticut, Massachusetts and Rhode Island. The three-state solicitation represents a chance for the region to revive its climate and clean energy ambitions following a year that saw developers cancel a series of power contracts for new offshore wind projects.
But it comes amid growing questions over developers’ ability to contain escalating project costs, which soared last year in the face of inflation and supply chain constraints.
Analysts are watching the bids to see if prices come in below the high electricity rates recently approved for new offshore wind projects in New York and New Jersey. Developers need to hit a sweet spot where prices are high enough to cover costs but not so astronomic that they call the industry’s future viability into question.
