In this connection, Ørsted will move ahead with talks on a fixed-price power purchase agreement (PPA) with the utilities for 0.42TWh per year of power from the Revolution Wind project.
The new offshore wind farm located within the northern Massachusetts-Rhode Island BOEM lease area will be built about 25kms south of the Rhode Island coast.
The Ørsted’s offshore wind farm was selected by the Department of Energy and Environmental Protection following a competitive solicitation process.
Ørsted Offshore executive vice president and CEO Martin Neubert said: “We’re happy to have been selected for contract negotiations as the only offshore wind project in this zero carbon RPF. Revolution Wind will contribute to Connecticut’s transition to clean energy and add to our attractive construction pipeline in New England which now totals 830MW.”
Through the 100MW added capacity, Revolution Wind’s total capacity has gone up to 700MW, which includes previously awarded projects in Rhode Island and Connecticut. Ørsted revealed its intentions to build these offshore wind farms as one joint project in order to unlock significant synergies in procurement, construction and operations.
Depending on signing of the PPA contract and final investment decision from Ørsted, the Revolution Wind project is expected to break ground in 2022 with a target to begin operations in 2023.
Upon its commissioning, the offshore wind farm will deliver 400MW to Rhode Island and 300MW to Connecticut.
Apart from the 700MW joint project, the Danish power company will simultaneously construct the nearby 130MW South Fork project, to realize further synergies.
The Revolution Wind project is originally a 600MW offshore wind farm proposed by Deepwater Wind. In October 2018, Deepwater Wind was acquired by Ørsted from the D.E. Shaw Group for $510m.
Last month, Connecticut regulators approved a 20-year PPA for the initial Revolution Wind project. Connecticut’s Public Utilities Regulatory Authority approved a long-term power purchase agreement made by Ørsted with two Connecticut utilities Eversource and United Illuminating, for 200MW of power.
