Massachusetts electric distribution companies have been authorized to take on up to 40% of a two-part, $1.7 billion clean energy project in northern Maine.
The Massachusetts Department of Energy Resources, after consulting with the state Attorney General’s Office, notified Maine of the decision Friday.
The Maine Public Utilities Commission in October selected the 1-GW King Pine wind farm proposed by Longroad Energy and a 345-kV power line proposed by LS Power to help move the state closer to its renewable energy goals.
The transmission line is expected to cost ratepayers $2.78 billion, while the wind power is expected to provide a $1.08 billion benefit for a net cost of $1.7 billion over 30 years. But the PUC opted to also look for partnerships with other states that could reduce the cost of the projects to Maine ratepayers.
The DOER determined that the two projects would meet the standards set forth in Section 82 of last year’s Driving Clean Energy and Offshore Wind Act: They would provide cost-effective, clean-energy generation to Massachusetts ratepayers and help the state meet its decarbonization goals while improving energy security and reducing costs during the winter.
The department is additionally requiring that negative impacts be minimized to the extent possible; progress be demonstrated toward permitting and interconnection approvals; and a credible schedule and plans be in place.
It directed the EDCs to begin negotiations with the two projects’ developers for cost-effective long-term contracts that will be reviewed and approved by the Massachusetts Department of Public Utilities.
The Maine PUC has set a Jan. 15 deadline for its staff to report back on potential partnerships and recommend the next step. The Massachusetts DOER set a Feb. 28 deadline for Maine to obtain contract support to demonstrate the project’s viability.
The move comes as Massachusetts’ efforts to foster ocean-based wind power off its coast falter. Construction has begun on an 800-MW wind farm, but developers of two projects that would have a combined 1,600 MW capacity have said the financial terms are no longer viable because of escalating costs. (See related story, Mass. DPU Orders Commonwealth Wind Project to Continue.)
