The Biden administration approved the Vineyard Wind project; the biggest offshore wind facility in the country. The news broke this Tuesday as the Departments of the Interior and Commerce announced it.
Firstly, the Department of the Interior, as well as the Bureau of Ocean Energy Management (BOEM); along with the Department of Commerce, released this Monday the Record Decision and final approval for the commencement of construction and first phase of operations for the project
Secondly, as we reported previously, Dennis Arriola, Avangrid Renewables’ CEO, said during a conference call with investors he expected the approval to come during the second quarter of this year. After, back in March, BOEM granted the project with its final environmental impact statement.
Thirdly, according to what Arriola said, full commercial operation would happen around 2024; while the first phase of the project, the Vineyard Wind 1, would begin one year earlier, in 2023.
Moreover, the 8-gigawatts project may also receive a final investment decision in the second half of this year. After the final investment decision, the project will have financial close.
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Vineyard Wind expects final steps for its commencement
In addition, the Vineyard Wind project will be an 8-gigawatt energy project located approximately 12 nautical miles offshore Martha’s Vineyard, in Massachusetts; and 12 nautical miles offshore Nantucket.
Furthermore, when fully operational, it will generate enough electricity to power 400,000 homes in New England, the administration said in its statement. It will also create 3,600 jobs; which delivers on President Joe Biden’s promise about fighting climate change while boosting green employment.
On the other hand, the company is also foreseeing substantial growth opportunities in the sector of renewables in the U.S. “Leadership in offshore wind will drive significant growth opportunities; also supported by favorable federal policies and strong demand for clean energy.” Arriola said.
Finally, as of now, all major construction contracts for Vineyard Wind are already secured. The utility has to finalize evaluation of optimal financing structures including also tax equity, to proceed with project finalizing.