BOSTON — The governor on Monday announced the activation of the Vineyard Wind contracts, pledging that the venture will save Massachusetts customers a projected $1.4 billion on electricity bills over the next 20 years.
Vineyard Wind is an 806-megawatt project located 14 miles off the coast of Massachusetts. It has been producing power since January 2024.
The project began construction in late 2022. Massachusetts was the first state in the country to move forward on a utility-scale offshore wind project.
“Vineyard Wind is a key part of our all-of-the-above strategy to lowering energy prices,” Gov. Maura Healey said in a statement. “Throughout one of the coldest winters in recent history, Vineyard Wind turbines powered our homes and businesses at a low price, and now that price goes even lower with the activation of these contracts.”
Healey cited increasing prices due to the war in Iran.
“Offshore wind is a homegrown Massachusetts industry, and we’re going to keep supporting these important projects,” Lt. Gov. Kim Driscoll said in a statement. “Vineyard Wind shows us what’s possible: lower prices, more jobs, and reliable power when we need it the most.”
This past winter, Vineyard Wind lowered electricity prices by competing in wholesale markets, consistently offering lower prices than other sources, Healey said.
Monday’s activation of the utilities’ contracts on behalf of Massachusetts customers further lowers the price of electricity generated by Vineyard Wind.
The contracts are expected to provide customers in Massachusetts an average of 1.4 cents/kWh in direct bill savings – at a price that’s less than half of peak pricing we saw this winter.
Healey said the project has created nearly 4,000 jobs and delivered $1.94 billion in total economic output.
The project will reduce carbon emissions by more than 1.6 million metric tons per year, equivalent to taking 325,000 cars off the road annually or to burning more than 3.7 million barrels of oil, state officials said.
“The activation of the Vineyard Wind contract is an important milestone on the road to lower energy prices and a strong offshore wind industry,” Energy and Environmental Affairs Secretary Rebecca Tepper said in a statement. “Today also demonstrates the value of these long-term contracts, which are carefully vetted to maximize customer savings, bring on the supply we need, and get projects off the ground. I appreciate the support of the Legislature for the long-term vision for an offshore wind industry we are now seeing in action.”
State officials said offshore wind is a critical energy resource in the Northeast and is uniquely positioned to meet the New England region’s winter peak demand for electricity.
Offshore wind has its highest output in the coldest winter months when the New England grid is most constrained, officials said.
A recent report from Acadia Center found that, during the week-long deep freeze earlier this year, wind generation peaked, hitting near-record performance levels. The report explained that offshore wind would have saved New England ratepayers at least $400 million in utility bill costs during the winter of 2024/2025, lowering energy market prices by 11% and insulating ratepayers from expensive, volatile natural gas markets.
This is a developing story. Check back for updates as more information becomes available.
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