The Massachusetts Department of Public Utilities has once again delayed the finalisation of offtake contracts for two offshore wind projects, pushing the timeline to a new deadline of June 30, 2026. The projects, Ocean Winds’ 1,287MW SouthCoast Wind and Iberdrola’s 791MW New England Wind 1, were selected in a dual-state solicitation with Rhode Island back in September 2024. The repeated delays have raised questions about the stability of the offshore wind sector in the United States, particularly in light of recent federal policy shifts.
In a December 30 letter to the Massachusetts Department of Public Utilities, lawyers representing the evaluation team negotiating the contract with the developers cited “ongoing uncertainty caused by federal level activities” as the reason for the delay. The letter stated that the developers are now targeting the completion of negotiations and execution of contracts on or before June 30, 2026, with filing of contracts with the Department by August 31.
The delay comes just a week after former US President Donald Trump ordered a halt to all five offshore wind projects currently under construction in US waters. This federal intervention has added a layer of complexity to the already challenging process of finalising offtake contracts for offshore wind projects. The uncertainty at the federal level has left developers and stakeholders in a state of limbo, unsure of how to proceed with projects that require significant upfront investment and long-term planning.
The delay in Massachusetts is not an isolated incident. Similar delays have been observed in other states, highlighting the broader challenges facing the offshore wind sector in the United States. The sector has been touted as a key component of the country’s transition to renewable energy, but the recent setbacks have raised questions about the sector’s ability to deliver on its promises.
The delay in finalising contracts for the SouthCoast Wind and New England Wind 1 projects could have significant implications for the offshore wind sector in the United States. It could deter potential investors, slow down the development of other projects, and create uncertainty for stakeholders. Moreover, it could undermine the confidence of other states that are looking to offshore wind as a means of meeting their renewable energy goals.
The situation also underscores the need for a more stable and predictable policy environment for the offshore wind sector. The sector requires long-term planning and significant upfront investment, and the current level of uncertainty is not conducive to such planning. A more stable policy environment would provide developers with the confidence they need to invest in and develop offshore wind projects.
In the meantime, stakeholders in the offshore wind sector will be watching closely to see how the situation unfolds. The outcome of the negotiations between the developers and the evaluation team, as well as the federal government’s stance on offshore wind, will have significant implications for the sector. The sector’s ability to overcome these challenges and deliver on its promises will be a key test of its resilience and potential.
The delay in finalising contracts for the SouthCoast Wind and New England Wind 1 projects is a reminder of the challenges facing the offshore wind sector in the United States. It is also a call to action for policymakers, developers, and stakeholders to work together to create a more stable and predictable policy environment for the sector. The sector’s ability to overcome these challenges and deliver on its promises will be crucial for the United States’ transition to renewable energy.