Massachusetts Delays Round 5 of Bidding Process on Our Site
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The Massachusetts Department of Energy Resources (DOER) has announced a delay in the release of the Round 5 Request for Proposals (RFP) for offshore wind projects until at least 2026. This decision comes in response to a confluence of factors, including ongoing contract negotiations and federal policy uncertainties.
The current contract negotiations between Round 4 winners, such as Avangrid and SouthCoast Wind, and the state's Electric Distribution Companies (EDCs), have been delayed, with the signing now scheduled for 31 December 2025[5]. These negotiations are a crucial step in the process, and their delay has ripple effects on the timeline for future solicitations.
One of the primary factors contributing to the delay is the uncertainty surrounding federal policies related to offshore wind permitting. This includes a Presidential Memorandum halting federal permitting of wind projects, ongoing litigation challenging that memorandum, and questions about investment tax credits and tariff issues[5].
To address these uncertainties and ensure a more stable environment for future solicitations, DOER has decided to postpone the Round 5 RFP until at least 2026[5]. This decision aligns with the department's requirement to establish a staggered procurement schedule, ensuring any subsequent solicitation occurs within 24 months of a previous solicitation[6].
In addition to the federal uncertainties and ongoing contract negotiations, the availability of the investment tax credit and tariff uncertainty are also factors contributing to the delay of the Round 5 RFP[5].
To gather feedback from potential bidders and public stakeholders, DOER issued a Request for Public Comment[3]. This request aimed to understand prospective bidders' intent to bid in Round 5 and gather insights on a preferred procurement schedule[3].
The delay in the Round 5 RFP is not related to the contract negotiations between Round 4 winners and the state's EDCs, which are scheduled for 31 December 2025[4]. It is important to note that CIP withdrew Vineyard Wind 2 from negotiations[1].
The Massachusetts DOER received overwhelming feedback from potential bidders asking for a delay in the Round 5 RFP until at least 2026[2]. This decision reflects a collective understanding that addressing the current challenges at the federal level is essential to ensure a successful and sustainable offshore wind industry in Massachusetts.
References: 1. CIP withdraws Vineyard Wind 2 from negotiations 2. DOER Delays Round 5 RFP Until at Least 2026 3. DOER Issues Request for Public Comment on Prospective Bidders' Intent to Bid in Round 5 and Preferred Procurement Schedule 4. DOER: Delay in Round 5 RFP not related to Round 4 contract negotiations 5. DOER Expects Round 5 RFP for Offshore Wind Projects in 2026 6. DOER Staggered Procurement Schedule Requirement
- The postponement of the Round 5 RFP for offshore wind projects in Massachusetts until at least 2026 is due to uncertainties in financing, as the availability of the investment tax credit and tariff issues have also been factors contributing to the delay.
- The Massachusetts Department of Energy Resources (DOER) aims to create a more stable environment for future solicitations by aligning its decision with a staggered procurement schedule, which requires any subsequent solicitation to occur within 24 months of a previous one.
- In addition to ongoing contract negotiations and federal policy uncertainties, addressing current challenges at the federal level, particularly those related to offshore wind permitting, is essential to ensure a successful and sustainable offshore wind industry in Massachusetts.
