August 5, 2024
New Offshore Wind Power Will Be an Affordable, Clean Energy Option for Mass Ratepayers
The Cost of 3.6 GW of Offshore Wind Will Result in a Less-than-1% Increase for an Average Household.
The purchase of 3.6 GW of offshore wind for Massachusetts this year would deliver affordable renewable energy for residents, while unlocking significant climate and economic development benefits, according to a new independent analysis reviewed by Industrial Economics (IEc).
Massachusetts’ most recent offshore wind solicitation is the state’s largest request to date and has the potential to procure up to 3.6 GW of offshore wind energy. IEc’s review confirms insights into the outcome of a procurement, showing that the anticipated cost to purchase 3.6 GW of offshore wind this year would result in a less-than-1% increase in the average residential consumer’s monthly bill.
“Affordability is fundamental to the successful deployment of offshore wind. With a minimal increase in electricity prices, Massachusetts will be pulling our biggest lever possible to address the climate crisis while strengthening our regional economy, improving public health, and creating family-sustaining union jobs,” said Elizabeth Turnbull Henry, President of the Environmental League of Massachusetts. “Massachusetts should contract for the full 3.6 GW of offshore wind for which it requested bids, ensuring Massachusetts continues to be a leader in building an equitable clean energy future.”
Background
The Environmental League of Massachusetts (ELM) is the founding convener of New England for Offshore Wind (@NE4OSW). ELM recognizes the significant role that offshore wind must play in our clean energy transition, projected to provide half of the energy supply needed to meet our state’s 2050 climate targets. ELM is also aware of how the price of offshore wind has evolved in recent years and how energy burdens impact consumers’ daily lives.
The independent analysis reviewed by IEc confirms the potential impacts that a range of offshore wind contract prices in this year’s solicitation might have on residents and businesses in Massachusetts.
IEc’s review confirmed that procuring the full 3.6 GW of offshore wind would result in average residential bill impacts of no more than a few dollars a month, and likely closer to zero.
The analysis reviewed by IEc did not quantify additional benefits of offshore wind, such as the creation of tens of thousands of high-quality jobs in the region, the billions of dollars in annual economic output, and the lowering of health-related costs from reduced air pollution.
About ELM
The Environmental League of Massachusetts (EnvironmentalLeague.org) advocates for policy that meets the scale and urgency of our environmental challenges. ELM is the founding convener of New England for Offshore Wind (@NE4OSW), a broad-based coalition of environmental organizations, businesses and associations, academic institutions, and labor unions committed to combatting climate change by increasing the supply of clean energy to our regional grid through more procurements of responsibly developed offshore wind.
###
