The Maryland Public Service Commission (PSC) has approved US Wind's application for a rebid, awarding the company additional offshore wind renewable energy credits (ORECs) to support its offshore wind development off the Maryland coast. This approval allows US Wind to move forward with the construction of a 1,710MW offshore wind project, set to be developed in four phases.
The project, which will consist of 114 turbines each rated at 15MW, is expected to significantly contribute to Maryland's renewable energy goals. As part of the revised plan, US Wind reaffirmed its commitment to building the Sparrows Point Steel facility in Baltimore Harbor, which will produce offshore wind turbine monopiles. Additionally, the company will source cables from Hellenic Cables' upcoming South Baltimore facility and steel from Crystal Steel Fabricators in Federalsburg, located on Maryland's Eastern Shore.
The PSC's decision follows the passage of House Bill 1296, signed into law by Governor Wes Moore on May 9, 2024. The bill required the PSC to open a proceeding to evaluate revised schedules, project sizes, and pricing for previously approved offshore wind projects. US Wind was the only applicant in this round.
Frederick H. Hoover, chair of the Maryland Public Service Commission, emphasized the project's importance in the state's renewable energy expansion. “Our decision will support the expansion of renewable energy generation in Maryland, and advance the development of a project which will produce significant economic, environmental, and health benefits to our state, including assuring our future energy needs,” Hoover said. “The Commission's analysis through the independent consultant and our hearings demonstrated the importance of this project in providing emission-free energy, jobs, economic opportunity, and cost benefits to Maryland ratepayers.
This new project combines the capacity left over when Skipjack Energy relinquished its previously awarded ORECs in January 2024. US Wind's earlier projects, awarded in the 2017 and 2021 offshore wind rounds, totaled more than 1,056MW in capacity.
Phase 1 of the new project is expected to reach commercial operation by 2029, with Phases 2, 3, and 4 anticipated to be operational by December 2030. The first year of OREC schedules for these phases will begin in January 2031.
The PSC confirmed that the project meets the required ratepayer impact tests, ensuring that costs will not exceed statutory thresholds for residential and non-residential customers, as outlined for both Round 1 and Round 2 projects.
