WHAT YOU NEED TO KNOW ABOUT THE NEW MASS. CLEAN ENERGY PROJECT PROPOSALS

By Tim Cronin, Policy Fellow

 

Quick facts

• Massachusetts is seeking 1,200 MW of new renewable energy sources and has put out a clean energy request for proposals (RFP).
• Five companies submitted proposals in response to the RFP.
• All bids made call for large transmission projects that import clean energy from Canada and neighboring states.
• National Grid, Eversource, Hydro-Quebec, and Avangrid are among companies competing for the 20-year contracts.
• Winning project(s) will be chosen by the end of January 2018, and are expected to be operational by early 2020.

 

Last week’s bid submissions were in response to a March solicitation made collaboratively by Massachusetts’ Department of Energy Resources (DOER), and the state’s Investor Owned Utilities (IOUs), which include Eversource, National Grid, and Unitil. The RFP’s goal was to boost the percentage of large renewable projects in Massachusetts. The RFP is also expected to lower long-term energy costs for state ratepayers.

Clean Energy Law

The solicitation was required by Governor Baker’s 2016 energy bill, which directed the state’s IOUs to enter into 20-year contracts to purchase 2,800 MW of renewable energy. The law calls for 1,600 MW of this energy to come from offshore wind, while the remaining 1,200 MW is to come from a mixture of hydro, solar, and onshore wind. This RFP is part of the latter requirement, and is separate from the RFP bids for offshore wind.

Project Highlights

In total nine project proposals, put forth by five company partnerships, were made public last week. Three of the five partnerships seek to use hydropower supplied by Canadian Hydro-Quebec. Only two of the nine projects propose using renewable energy from American sources, with the rest seeking to import wind, solar, or hydro from Canada. The partnerships include: 

Central Maine Power (CMP) & Avangrid

• Proposed 2 projects in Maine using land CMP controls.
• Would build 140-145 miles of new transmission line from the Canadian border to Lewiston, Maine.
• “New England Clean Energy Connect” project would import 1,200 MW of hydro from Hydro-Quebec.
• “Maine Clean Power Connection” project would use 460-1,100 MW of solar and wind from planned projects in western Maine.

Eversource

• Proposed 2 projects called “Northern Pass” which would build 45 miles of new line in New Hampshire, and upgrade 147 miles of existing line.
• One project would use 100% Canadian hydro, the other a mixture of hydro and wind energy.
• Both have faced criticism from local groups for a route that cuts through the White Mountains and the projects’ potential cost to New Hampshire residents.

TDI- New England

• 2 projects called “New England Clean Power Link” proposed in Vermont.
• One project would use 100% Canadian hydro, the other a mixture of hydro and wind energy.
• Projects have already received all necessary state and federal permits.
• Both projects include 57 miles of new underground line, and 97 miles of line to be laid under Lake Champlain.
• Projects have the backing of local environmental groups, and Vermont’s Governor.

National Grid & Citizens Energy

• 2 projects proposed by National Grid and the non-profit Citizens Energy.
• “Granite State Power Link” seeks to import 1,200 MW of Canadian wind power.
• “Granite State” project would build 59 miles of new line in New Hampshire and Vermont, and upgrade an additional 109 miles of existing line.
• “Northeast Renewable Link” includes up to 600 MW of wind, solar, and small hydro from New York, and 23 miles of new line.

Emera Inc.

• “Atlantic Link” project proposes importing 900 MW of hydro and wind energy from eastern Canada.
• Proposes laying 375 miles of under-ocean cable.
• Cable would connect near the soon to be abandoned Pilgrim Nuclear power plant in Plymouth, Massachusetts

 

Benefits and Costs

From a small business perspective this RFP has some important upsides, but also notable downsides. It is important to invest in large scale renewable energy projects, as this RFP does. Such projects help to reduce long-term energy costs for ratepayers, including local small businesses. Plus it helps reduce our energy grid’s dependence on fossil fuels, which is good for the climate.

In addition to the negative environmental and cultural impacts of large-scale hydro, many of the RFPs do little to invest in local renewable companies. With the exception of the Maine Clean Energy Connection project, all other proposals import energy from outside New England’s grid. Future clean energy RFP’s should do more to encourage development of local renewables. Doing so would allow the Massachusetts economy to capture more of the benefits of renewable energy.

Next Steps

Winning bids are to be chosen by Jan. 25th, 2018, with contracts expected to be negotiated by the end of March. Final approval by regulators and utilities is expected by April 2018, with selected projects operational in early 2020.

 

About the author: Tim is an economics and politics student at Stonehill College. This past year he had the opportunity to study at Oxford University, exploring global governance, human rights law, and int’l economics. As a senior, Tim will serve as student-body president and continue to fight for sustainable initiatives such as fossil fuel divestment and expanding the college’s solar farm. He has interned at the State House and serves on the board of his local civic association. Tim enjoys reading The Economist, listening to podcasts, and exploring state parks in his free time.