SouthCoast Wind withdraws from contracts. Here's what that means for Somerset

SOMERSET — The company planning to build a wind energy substation in Somerset officially got permission to cancel its contracts with Massachusetts utility companies, saying it still plans to build a wind turbine farm off the coast of Martha's Vineyard and Nantucket.

"Closing these contracts was never the plan, but impacts of covid-related supply chain disruptions and the war in Ukraine made them unfinanceable," Rebecca Ullman, Director External Affairs SouthCoast Wind, said in a statement. "We are grateful for the fast approval by the MA DPU."

Companies looking to develop wind turbine projects must negotiate contracts with utilities companies to provide them with power. SouthCoast Wind, a developer planning to build a wind turbine farm about 30 miles south of Martha’s Vineyard, procured contracts to supply power in Massachusetts in 2020 and 2021.

SouthCoast Wind revealed its plans to withdraw from its original contracts earlier this summer, saying in a filing with the Rhode Island Energy Facility Board that the project was no longer viable under the terms they had already negotiated with state utility companies and that they planned to bid for new contracts during the current round of offshore wind procurement.

SouthCoast will pay $60M termination fee

On Monday, the Department of Public Utilities approved an agreement to require SouthCoast to pay $60 million in termination fees in exchange for terminating its existing contracts with state energy companies.

SouthCoast is one of three wind turbine projects planned for off the coast of Massachusetts. Commonwealth Wind has also walked away from its original contracts in Massachusetts and says it plans to rebid. Vineyard Wind, an offshore wind farm with close ties to New Bedford has already begun construction on wind turbines off of Cape Cod.

Massachusetts is currently soliciting bids for offshore wind projects; bids are due on Jan. 31 of next year.

How could this impact Somerset?
SouthCoast Wind plans to construct an electrical substation on Brayton Point in Somerset to convert energy generated by its wind turbines into power that can be sent into National Grid's electrical grid.

They still plan to construct the wind turbines and other portions of the project, including the Somerset substation.

"The project is full steam ahead — we have budgeted $100 million this year alone to advance our project, and our federal, state, and local permitting is progressing. We remain committed to delivering clean energy to the grid by the end of this decade," Ullman said.

On Wednesday, SouthCoast Wind reiterated that the timeline for the project has not changed in spite of their decision to withdraw from their contracts and rebid.

“The SouthCoast Wind project remains on track, including plans for the Brayton Point converter station," Ullman said.

What's happening with Prsymian's project in Somerset?

Brayton Point, the former home of a massive coal-fired power plant that shuttered in 2017, has become a hub for the growing wind industry. In a separate project, Prysmian Group plans to construct a manufacturing facility to produce underwater cables for nearby wind farms.

Prysmian originally planned to begin site work on Brayton Point in September, but is still going through the process of securing final local approval from the town.

At a recent meeting, the Zoning Board of Appeals said it would reconsider a requirement it placed on Prysmian to use shore-to-ship power. For months, a group of residents on Brayton Point have been adamant that all ships docking at the Brayton Point plant to pick up completed cables must use shore-to-ship power to load the cables, saying that using power from the ships themselves would create excess light, noise and air pollution in a neighborhood that already bore the brunt of pollution and other disruptions from the power plant and other operations in the area.

Prysmian had previously said it would outfit some of its ships to use shore-to-ship power to load completed cables but that it could not guarantee that all ships docking at Brayton Point would use that method.

This article originally appeared on The Herald News: SouthCoast Wind maintains Somerset project will continue