$1.4B saved: Massachusetts locks in cheaper offshore wind power

Massachusetts has activated long-term contracts for Vineyard Wind, the state’s first utility-scale offshore wind project. Officials say the move will stabilize prices for 20 years and cut a projected $1.4 billion from customer electricity bills over that period.

The contracts, signed by utilities on behalf of customers, are expected to deliver average direct savings of about 1.4 cents per kilowatt-hour. That’s less than half the peak power prices New England saw during a cold snap this past winter.

The timing matters. During that winter, Vineyard Wind was already feeding electricity into the grid and competing in wholesale markets, and, according to the state, it consistently undercut other sources on price.

Now that the contracts are in effect, those lower prices are locked in.