By Mette Jakobsen, management exchange student at UMass Boston
On November 20, 2019, Kathleen Freeman, Senior Manager of Permitting & Environmental at Mayflower Wind Energy LLC, discussed the challenges and opportunities of advancing offshore wind energy in Massachusetts.
Mayflower Wind is a joint venture between Shell New Energies (50%) and EDP Renewables (50%). In October 2019, Mayflower Wind won the second Massachusetts state bid for offshore wind energy to build an offshore wind farm. The proposed 804 MW wind farm will be located on the Atlantic Coast’s
outer continental shelf, around 85-105 km from the shore. The development is expected to provide
electricity for 683,000 homes, and a $135 million lease payment will provide revenue to the U.S.
Government.
Offshore wind farms will further expand the use of wind as a clean and low-cost energy source in Massachusetts and help achieve its ambitious climate goals. Globally, cumulative wind capacity has increased from 4,117 MW in 2011 to 18,814 MW in 2017. Global offshore wind capacity has also increased
significantly, with China, the United Kingdom, and Germany at the forefront of this trend. While still
behind compared to global peers, state policies have helped advance offshore wind energy
deployment in the U.S. Wind energy is implemented because it is a clean, renewable energy source that is price competitive. The Mayflower Wind project has been referred to as “the lowest cost offshore wind energy ever in the U.S.,” below the original price cap of $84.23 per MWh. This is possible because the turbines are getting more extensive and efficient, the sector accumulates experience, and supply chains mature.
Mayflower’s project will help achieve mandatory state environmental and clean/renewable energy goals by potentially eliminating up to 2.5 million metric tons of greenhouse gas emissions annually once in operation — the equivalent of taking 5.3 million cars off the road. Integrating offshore wind energy in Massachusetts is estimated to save electric customers in New England $3.7 billion over the 20-year
Power Purchase Agreement term. The development is projected to create 250 direct
jobs and 10,000 total jobs (direct and indirect) when in operation.
Despite the numerous benefits, the wind industry and Mayflower Wind face complex challenges. These include permitting, financing, and risk management. Ms. Freeman shared that there are multiple layers of permitting (local, state, and federal), and some approvals are estimated to take as long as 24 months to secure. The company is learning how to navigate the complex and challenging permitting process from Cape Wind and Vineyard Wind. Cape Wind, for example, spent millions of dollars over 16 years, and, despite being the first U.S. offshore wind project to be fully permitted, it failed for other reasons (e.g., delays from time-consuming litigation with opponents, failure to meet a construction deadline, and local utilities canceling their contracts to buy its power). Offshore wind development also requires significant investments. The usual lifespan of wind projects is 30 years, requiring investors to think long-term. In addition, the infrastructure for offshore wind is still not fully developed. It demands significant power transmission and conversion investment because it is critical to delivering generated energy to the customers.