No one knew exactly how President Donald Trump’s first-day order halting new offshore wind leases would affect the federal approvals already granted for the SouthCoast Wind project planned south of Martha’s Vineyard and Nantucket.
More than two months later, uncertainty still hangs over the 147-turbine wind farm. Which is why SouthCoast Wind and utility companies in Rhode Island and Massachusetts announced Monday a three-month extension to finish contract negotiations — the same day final contracts were set to be executed.
“The multi-state negotiations have been complex and ambitious; now they must also tackle uncertainty presented by federal policy,” Rebecca Ullman, a SouthCoast Wind spokesperson, said in an emailed statement on Monday. SouthCoast Wind is grateful for the continued collaboration with our Massachusetts and Rhode Island partners.”
The new June 30 deadline marks the third delay since Rhode Island and Massachusetts jointly unveiled plans in September to buy power from SouthCoast Wind following a competitive, tri-state solicitation that included Connecticut. The bulk of the power from SouthCoast’s 1,287 megawatts of “nameplate capacity” — 1,087 megawatts — would go to Massachusetts under tentative contracts with its utility companies. Rhode Island Energy was set to buy the remaining 200 megawatts of wind-powered electricity to deliver to the Ocean State’s electric grid.
The contracts lock in these commitments, and also set the price per-megawatt hour that utility companies agree to pay to the developer.
Supply chain snafus and inflationary pressures have driven up developer costs, prompting some companies, including SouthCoast, to renege on existing pricing agreements in hopes of a more lucrative deal. That, in turn, has put more pressure on utility companies — and ratepayers — to cover their rising expenses.
A prior attempt by Rhode Island Energy in 2023 to buy more offshore wind power was canceled after the only submission, from Danish wind giant Ørsted A/S, was deemed too expensive relative to environmental and economic benefits.
Rough seas worsened after the November election, with Trump’s vocal anti-wind sentiment creating alarm for states that already set mandates to bring in offshore wind power.
SouthCoast parent company was ready for delays
Ocean Winds, the European parent company of SouthCoast Wind, told investors last month it was slashing the value of its North American portfolio by €267 million (equal to $275 million) to account for delays in its three U.S. wind farms, including SouthCoast.
Company executives stressed that the writedown was a “precautionary measure” tied to federal uncertainty under the Trump administration. At most, they projected a four-year delay in completion of the SouthCoast Wind project.
Construction on SouthCoast Wind was originally slated to begin in 2026, delivering power to the electric grid by the end of the decade. The project has already received its requisite environmental and construction plan federal approvals under the Biden administration.
Lauren Diggin, a spokesperson for the Massachusetts Department of Energy Resources, alluded to federal political headwinds slowing contract negotiations in a statement Monday.
“The utilities and developers continue their hard work to negotiate and memorialize the bids in binding contracts,” Diggin said in an emailed response Monday. “Federal policy is an important factor in these projects and the parties are working to gain greater certainty before finalizing the contracts.”
Robert Beadle, a spokesperson for Rhode Island’s Office of Energy Resources, declined to comment about Trump’s executive order, but said the agency “remains in communication” regarding the SouthCoast Wind contract.
Gov. Dan McKee’s office did not immediately return inquiries for comment on Monday.
The multi-state negotiations have been complex and ambitious; now they must also tackle uncertainty presented by federal policy.
Rep. Michelle McGaw, a Portsmouth Democrat whose district includes the proposed underwater cable route for SouthCoast Wind, hoped the latest contract extension would bring more clarity to how federal policy affects already permitted wind projects.
“It’s hard to make concrete decisions in an environment where there’s so much uncertainty,” McGaw said in an interview Monday. “If this was a new application, we know exactly where this would lie, but because they are so far along in the process, there is more of a question.”
Rhode Island’s economic and environmental future hinges on its stake in the wind industry. Offshore wind is critical to meeting the state’s decarbonization mandates under the Act on Climate Law. A single offshore wind project like the 704-megawatt Revolution Wind project under construction south of Block Island, can offset over 1 million metric tons of carbon emissions each year — just shy of 10% of the gross greenhouse gas emissions tracked from Rhode Island in 2022.
“The long-term benefits of offshore wind remain critical to our region, and we must recognize that the current economic and market uncertainty presents a challenge to the industry,” said Amanda Barker, clean energy program coordinator at Green Energy Consumers Alliance and the Rhode Island state lead for New England for Offshore Wind. “While patience is critical in navigating today’s landscape, we know that the states and developers are dedicated to our shared climate, economic, and energy independence goals and we need to find a way to get these projects over the finish line as soon as feasible.”
Wind power offers a more stable supply of electricity compared with natural gas too — top-of-mind for McGaw on the heels of another winter plagued by volatile spikes in electricity bills for Rhode Islanders.
“We’ve been reading and hearing so much from constituents who are frustrated with their utility bills,” McGaw said. “So much of that is related to an unstable fossil fuel market.”
Yet public perception of offshore wind remains divided.
Nearly 6 in 10 Rhode Islanders surveyed as part of a 2024 Rhode Island Current poll conducted by MassInc Polling Group supported offshore wind, compared with 34% of those who disapproved. But among the state’s registered Democrats, support grew to a decisive 68%, while 6 in 10 registered Republicans disapproved.
Nantucket challenges federal review
On Thursday, the town of Nantucked filed a federal lawsuit in U.S. District Court in D.C. against the federal agencies that approved the SouthCoast Wind project, contending that the yearslong environmental review of the project was flawed.
Matt Fee, vice chair of the Nantucket Select Board, said in a statement that the lawsuit was about protecting the island’s economy, which depends on “heritage tourism.”
“This is not about protecting rich people’s views,” Fee said.
However, Patrick Crowley, president of the Rhode Island chapter of AFL-CIO and co-chair of Climate Jobs Rhode Island, disagreed.
“Nantucket is not known for its embracing of working-class culture,” Crowley said in an interview. “It’s the playground of the rich and famous.”
Ocean Winds’ Brown defended the federal review of its project in a statement Monday.
“BOEM conducted a rigorous environmental and historic preservation review process, which began in 2021,” Brown said. “Nantucket and its representatives were active participants throughout the entire process. We remain very confident in the thoroughness of the federal review and will continue to monitor the situation closely.” Crowley remains a vocal supporter of offshore wind because of the opportunities it presents for union workers who can help build and service wind projects across the region. He wasn’t troubled by delays in SouthCoast Wind contract negotiations, nor the looming threat of the Trump administration.
“As long as it gets built, and it gets built using my members, that’s the important thing,” Crowley said.
Assuming Rhode Island Energy completes contract negotiations by June 30, the proposed pricing agreement and estimated revenue would be submitted to the Rhode Island Public Utilities Commission by Aug. 25, according to an updated timeline on the state’s wind procurement website. Utility regulators have final authority over long-term renewable energy contracts under state law.
This story was originally published by the Rhode Island Current.
