Vineyard Wind Power Purchase Agreement

Jeremy Lyon @ 19-12-2020

The 800 MW wind farm is located in federal waters approximately 15 miles off the coast of Martha`s Vineyard. Once it is operational, it will generate electricity for more than 400,000 homes and businesses per year, the developer estimates. Steve is the lawyer of transactions with a broad commercial practice in real estate and energy transactions. He has advised clients in the area of buying, selling and leasing commercial and industrial real estate and has extensive experience in a wide range of… Vineyard Wind consists of two 400 MW units and secured 20-year power purchase contracts (PPAs) with electrical distributors (EDC) in Massachusetts at a starting price of $74/MWh for unit 1 and $65/MWh for Unit 2. Block 1 is expected online by 2022 and Block 2 by 2023. U.S. wind developers need to optimize advances in turbines, supply chains and capacity markets to counter falling tax credits and surpass record U.S. prices in Massachusetts, industry experts said at the U.S. Offshore Wind 2019 conference. Stephen (Steve) Miller is a partner in the Corporate Practice Group. It focuses on the development and financing of energy infrastructure projects, with a particular focus on electric energy – conventional and renewable – as well as other industrial and industrial real estate development and construction projects. “We are very pleased to reach this agreement, an important new milestone in a project that will bring a whole new industry to the United States,” said Sy Oytan, Deputy CEO of Vineyard Wind.

“There is a huge potential to create jobs, not only during construction, but also for operations and maintenance. These are well-paid jobs that will last for decades. Today, the two regulated electricity suppliers Eversource Energy and United Illuminating, submitted to the Utility Regulatory Authority (PURA), have entered into power purchase agreements for the 804 MW Park City Wind project, developed by Wind Vineyard. The Connecticut Department of Energy and Environmental Protection (DEEP) selected the Park City Wind project in December 2019 to advance contract negotiations with the two distribution companies. The submission of these contracts is another step forward for this offshore wind project. If the Park City Wind project is approved by PURA, it will provide 14 percent of the state`s electricity when it goes online in 2025, and will be the largest renewable energy purchase in Connecticut`s history. After final approval by the Federal Energy Regulatory Commission (FERC), Vineyard Wind, a joint venture between Copenhagen Infrastructure Partners and Avangrid Renewables, has entered into an agreement with ISO New England (ISO-NE) to supply energy to the grid as soon as the Vineyard Wind 1 project goes live. He added: “These long-term investments and commitment to Massachusetts will stimulate growth, economic development and the acceleration of an emerging offshore wind industry in the United States.” The agreement allows Vineyard Wind LLC, a 50/50 partnership between Copenhagen Infrastructure Partners (CIP) and Avangrid Renewables LLC, to link the wind farm project to the New England grid. The connection point will be an NSTAR 115kV switching station in Barnstable, Massachusetts, the developer said Wednesday. Vineyard Wind has established a demanding price repository for other developers.

In Massachusetts, about 2026/2027, an additional 1.6 GW of offshore wind capacity is expected online, and developers must exceed the price of Vineyard Wind.

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