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House tweaks offshore wind pricing

The changed amendment ...would direct the Department of Public Utilities to not approve any subsequent offshore wind contract “if the levelized price per megawatt hour, plus associated transmission costs, is greater than or equal to the adjusted levelized price per megawatt hour, plus transmission costs, that resulted from the previous procurement after adjusting such procurement’s price for the availability of federal tax credits, inflation and incentives.”

The House on Thursday adopted a version of an amendment that sought to ensure there will be competition for the next state procurement of offshore wind energy by changing a 2016 law that requires each wind procurement to be cheaper than the last.

Speaker Pro Tempore Patricia Haddad filed an amendment (# 280) to strip the 2016 price-control provision because of concerns that it could discourage competition among developers seeking to land the state’s next offshore wind contract.

Vineyard Wind, the company selected from the state’s first procurement, came back with a price of 6.5 cents per kilowatt-hour, a price hailed as remarkably competitive.

The changed amendment adopted without debate Thursday instead lays out a “staggered procurement schedule developed by the Department of Energy Resources” that would direct the Department of Public Utilities to not approve any subsequent offshore wind contract “if the levelized price per megawatt hour, plus associated transmission costs, is greater than or equal to the adjusted levelized price per megawatt hour, plus transmission costs, that resulted from the previous procurement after adjusting such procurement’s price for the availability... more [truncated due to possible copyright]  

The House on Thursday adopted a version of an amendment that sought to ensure there will be competition for the next state procurement of offshore wind energy by changing a 2016 law that requires each wind procurement to be cheaper than the last.

Speaker Pro Tempore Patricia Haddad filed an amendment (# 280) to strip the 2016 price-control provision because of concerns that it could discourage competition among developers seeking to land the state’s next offshore wind contract.

Vineyard Wind, the company selected from the state’s first procurement, came back with a price of 6.5 cents per kilowatt-hour, a price hailed as remarkably competitive.

The changed amendment adopted without debate Thursday instead lays out a “staggered procurement schedule developed by the Department of Energy Resources” that would direct the Department of Public Utilities to not approve any subsequent offshore wind contract “if the levelized price per megawatt hour, plus associated transmission costs, is greater than or equal to the adjusted levelized price per megawatt hour, plus transmission costs, that resulted from the previous procurement after adjusting such procurement’s price for the availability of federal tax credits, inflation and incentives.”

In essence, the process would take into account more factors than cost alone in comparing one offshore wind procurement to the next. The amendment, which would not take effect unless it survives conference committee talks between the House and Senate, mirrors a standalone bill Haddad filed in January (H 2867).

Utility companies and the state tapped Vineyard Wind to construct an 800-megawatt wind farm 15 miles south of Martha’s Vineyard and 34 miles from the mainland to fulfill the first half of a 1,600 MW procurement called for in a 2016 clean energy law.

Gov. Charlie Baker has said his administration will formally solicit the second 800 MW procurement authorized under the 2016 law by this June.


Source: https://www.southcoasttoday...

APR 26 2019
http://www.windaction.org/posts/49767-house-tweaks-offshore-wind-pricing
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