Massachusetts Extends Offshore Wind Contract Terms in New Legislation

The Massachusetts Legislature has passed a bill extending the allowable terms for future offshore wind contracts from a maximum of 20 years to a range of 15 to 30 years. The change is aimed at enhancing flexibility and supporting the state's ambitious clean energy goals.

Senate President Karen E. Spilka highlighted the significance of the legislation, which also directs the Department of Energy Resources (DOER) to assess the impact of current offshore wind solicitations on the state's emissions reduction targets.

The bill includes provisions to enforce high labor standards across clean energy initiatives, encompassing offshore wind, clean energy generation, and energy storage projects. Additionally, the DOER, in coordination with the Department of Public Utilities (DPU) and the Massachusetts Clean Energy Center (MassCEC), is tasked with developing guidance for long-term power purchase agreements (PPAs) between offshore wind developers and municipalities.

To further encourage investment, the legislation expands tax credits for offshore wind facility employers. Companies now need only 50 full-time employees to qualify for these incentives, which include refundable credits for capital investments.

“Massachusetts continues to demonstrate its leadership in the U.S. offshore wind industry,” said Stephanie Francoeur, senior vice president of marketing and communications at Oceantic Network. “This action by the Massachusetts legislature strengthens the industry and applies lessons learned from years of offshore wind energy procurement and project development.”

Francoeur also noted Massachusetts' collaborative efforts with other states on regional transmission and procurement projects, which recently secured 2,678 megawatts of offshore wind energy.

The bill now awaits the signature of Governor Maura Healey, who has emphasized the importance of advancing clean energy development as a cornerstone of her administration's priorities.