Minutes before midnight Jan. 2, the Vineyard Wind 1 project generated its first power for New England, sending about 5 MW of electricity to the grid via its interconnection point on Cape Cod, the project’s developers announced on Jan. 3.

The achievement is a significant step for New England’s first utility-scale offshore wind project and a needed win for an industry that policymakers and advocates hope will help push out fossil fuels and shore up the reliability of the grid in the coming decades.

“This is a historic moment for the American offshore wind industry,” Massachusetts Gov. Maura Healey (D) said in a press release. “As we look ahead, Massachusetts is on a path toward energy independence thanks to our nation-leading work to stand up the offshore wind industry.”

The 806-MW project is a joint venture between Copenhagen Infrastructure Partners (CIP) and Avangrid. The companies announced the project is on track to have five of its 62 turbines “operating at full capacity early in 2024.” Construction for the project began in late 2022, with developers hoping to complete the work by the end of this year.

The first-power achievement was applauded by political leaders, who touted the state’s leadership role in the offshore wind industry.

“This announcement is a historic step towards ensuring that the commonwealth plays its role in combating the climate crisis and is representative of the enormous potential that Massachusetts has to be a regional hub for the offshore wind industry,” said Massachusetts House Speaker Ronald Mariano (D).

The long-anticipated milestone comes amid a period of turbulence for the offshore wind industry, with a string of project cancellations threatening to delay the region’s next set of projects. On the same day as the announcement, Equinor and bp announced the termination of their contract with New York for the 1,260-MW Empire Wind 2 project. (See related story, Empire Wind 2 Cancels OSW Agreement with New York.)

The confluence of high interest rates, supply chain constraints and inflation have hit the East Coast’s nascent offshore wind industry right as it attempts to reach commercial viability. While projects like Vineyard Wind 1 and New York’s South Fork Wind were able to secure their contracts early enough to avoid price shocks, the second wave of projects across the East Coast have been beset by cancellations.

To help overcome these challenges, Massachusetts, Rhode Island and Connecticut are coordinating their next round of competitive offshore wind project solicitations, with bids due at the end of January. (See Mass., RI, Conn. Sign Coordination Agreement for OSW Procurement.) Meanwhile, New York is expediting its next round of solicitations, with bids due Jan. 25. (See New York Issues Expedited Renewable Energy Solicitations.)

The solicitations will allow for new indexed pricing mechanisms to account for inflation or other cost increases following a project’s selection.

If the industry can overcome these early challenges, offshore wind could bring significant decarbonization and reliability benefits to the grid; ISO-NE projections for 2032 indicate the resource could significantly reduce future risks of energy shortfall during extreme winter weather. (See ISO-NE Study Highlights the Importance of OSW, Nuclear, Stored Fuel.)

The new industry also offers the promise of jobs and economic development opportunities. The construction has been staged through the Marine Commerce Terminal in the city of New Bedford.

“New Bedford has invested a great deal of its time, energy and manpower into supporting the successful launch of the offshore wind industry in Massachusetts,” said state Rep. Tony Cabral (D). “With this first transmission of power from the Vineyard Wind I project, that commitment and long-term vision has been realized.”

The project has created nearly a thousand union jobs, nearly doubling the target set in the project labor agreement, according to a report commissioned by Vineyard Wind for the Massachusetts Department of Energy Resources.

“Massachusetts owes a debt of gratitude to this new clean energy workforce that is going to deliver clean, affordable energy to our homes and businesses,” Secretary of Energy and Environmental Affairs Rebecca Tepper said in a press release last month. “Offshore wind is driving emissions reductions for Massachusetts and the entire country and creating good-paying, family-sustaining jobs in the process.”