Vineyard Wind’s 800-Megawatt Offshore Wind Project Dealt Blow With Permit Denial

Vineyard Wind LLC on July 12 announced it will seek an order from the Massachusetts Department of Environmental Protection to overrule the Edgartown Conservation Commission’s denial of a permit to install offshore transmission cables. The decision came after the U.S. Interior Department informed that it was not yet prepared to issue a final environmental review, putting the timeline of the project into jeopardy. The 800-megawatt project, jointly owned by Avangrid and Copenhagen Infrastructure Partners, would be the first large-scale offshore wind development in the U.S.

The project developer expressed disappointment over the permit denial, saying the decision was “flawed, inconsistent with the evidence before it, and in contrast to the conclusions of many other regulatory authorities.”

In April, the Massachusetts Department of Public Utilities authorized power purchase agreements between Vineyard Wind LLC and the state’s electric distribution companies Unitil Corp., National Grid plc, and Eversource Energy for a period of 20 years. The approval is crucial for the developer to start construction by this year and become operational by 2021, taking advantage of the federal tax credit that has been a key factor in offering a competitive price.

The project was selected last year to negotiate contracts with Massachusetts’ electric utilities, in accordance with legislation enacted in 2016 that requires competitive solicitations to secure long-term contracts for 1,600 megawatts of offshore wind by June 30, 2027. The project would be located in the waters south of Martha’s Vineyard.

Avangrid is owned by Iberdrola SA.