On July 31, 2018, the governor of Massachusetts signed the Clean Energy Future Act (CEFA) into law adding another 1,600 MW of authorized offshore wind before December 31, 2035 to the 1,600 MW previously authorized under section 83C of 2016's Green Communities Act. The winning bid for the first 800 MW of the initial section 83C authorization, by Vineyard Wind (a joint venture between Copenhagen Infrastructure Partners and Avangrid Renewables), was selected under a competitive request for proposal issued in June 2017.
On August 1, 2018, the related electric distribution companies (EDCs) filed1 with the Department of Public Utilities (DPU) for the required approval of long-term power purchase agreements (PPAs) for up to 800 MW under section 83C of the Green Communities Act. In a related letter of support, the MA Department of Energy Resources (DOER) noted that the Vineyard Wind project was "superior in terms of having the lowest total proposal price and highest levelized benefit (at net present value) of all proposals evaluated" and that the total levelized price of 6.5 cents/kilowatt hour (kWh) in 2017 dollars was "materially below the levelized projected costs of buying the same amount of wholesale energy and RECs in the market, which is projected to be a total levelized price of 7.9 cents/KWh in 2017 dollars over the 20-year term of contract" and "projected to provide an average 1.4 cents/KWh of direct savings to ratepayers." DOER also noted that, in addition to these direct benefits, the PPAs would provide indirect benefits, including "energy market price reductions and lower Renewable Energy Portfolio Standard ("RPS") compliance costs through increased REC supply" and that the total benefits were "expected to be 3.5 cents/kWh, or $35.29/ megawatt-hours ("MWh") on average over the term of the contract, with total net benefits of approximately $1.4 billion."
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