Massachusetts has activated long-term power purchase agreements for the Vineyard Wind 1 offshore wind project, fixing electricity prices for a 20-year period.
The Healey-Driscoll administration announced the contracts on 27 April. According to the state government, the agreements are expected to deliver $ 1.4 billion, or about € 1.2 billion, in savings for customers over the contract term.
The state said the contracts would lower electricity bills by an average of 1.4 cents/kWh. These reductions are in addition to cost benefits linked to the project’s participation in wholesale electricity markets.
The 806 MW offshore wind farm is located around 24 km south of Nantucket. Construction began in late 2022, followed by the installation of the first GE Haliade-X turbines in 2023. The project started generating electricity in January 2024, with construction completed in March.
Massachusetts said the project contributed to lower electricity prices during the recent winter by supplying power at rates below other generation sources. It also supported grid reliability during periods of high demand.
The wind farm is expected to cut carbon emissions by more than 1.6 million tonnes annually. The administration added that the project has supported nearly 4,000 jobs and generated $ 1.9 billion, or about € 1.7 billion, in economic output.
The project is jointly owned by Avangrid and Copenhagen Infrastructure Partners (CIP) on a 50-50 basis.
During construction and commissioning, the project experienced several setbacks. In 2024, a turbine blade failure linked to a manufacturing defect led to a halt in operations and construction. This was followed by inspections, blade replacements and a temporary suspension of power generation.
More recently, Vineyard Wind has been involved in a legal dispute with turbine supplier GE Vernova. The developer filed a lawsuit to prevent GE Vernova from terminating its turbine supply and service agreement. A US court has issued a preliminary injunction requiring GE Vernova to continue its work while the dispute is under review.
