Rhode Island Regulator Approves National Grid’s Contract With 400-Megawatt Revolution Wind Project

The Rhode Island Public Utilities Commission approved a 20-year agreement under which National Grid plc will purchase 400 megawatts of electricity from the Revolution Wind Farm that is being developed by Orsted U.S. Offshore Wind and Eversource Energy, according to a May 28 press release.

National Grid will pay $98.425 per megawatt-hour as part of the deal. The Rhode Island Energy Office found that the contract will reduce long-term energy costs for local ratepayers, enhance grid reliability, and lower carbon emissions, generating over $1 billion in net energy, economic and environmental benefits to the state. Estimated to cost about $250 million, the project will begin construction in 2020 and is slated for operation by 2023.

The offshore wind farm, originally developed by Deepwater Wind, was acquired by Denmark-based Orsted A/S last year. Ørsted and Eversource entered into a partnership in February for key offshore wind assets in the Northeast. Eversource announced it is paying about $225 million for a 50 percent stake in Revolution Wind and South Fork Wind Farm projects, as well as the 257-square-mile tract off the coasts of Massachusetts and Rhode Island. Ørsted bought the assets in November 2018 as part of its Deepwater Wind transaction.