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RECENT DEVELOPMENTS — 2023
project proposed by Mid-Atlantic Offshore Development ( MAOD ) and Jersey Central Power & Light Company as well as various other onshore upgrade projects to enable injection capacity . 8 MAOD is a joint venture of EDF Renewables- North America and Shell New Energies U . S . Although the state solicited both onshore and offshore transmission solutions , it only selected projects proposing onshore solutions . The NJ BPU estimates that this approach would save New Jersey ratepayers $ 900 million as compared to an uncoordinated approach , even after accounting for recent cost increases . In April 2023 , the NJ BPU announced its intention to conduct another SAA solicitation for projects to interconnection the incremental 3.5 GW of offshore wind generation associated with its now 11 GW procurement goal . 9 This solicitation is expected to open in 2023 .
Various consortiums of New England states and developers have been exploring coordinated offshore wind transmission solutions intended to serve multiple states and , in some proposals , to cross the Canadian border . In addition to enabling more efficient use of limited interconnection points and development cost savings , these projects are also intended to increase reliability . These transmission proposals remain in the early stages but could gain more traction through the next phase of offshore wind development on the East Coast .
4 . OREC Agreements
Most recently , developments in contract negotiations for Offshore Renewable Energy Credits ( ORECs ) have been the topic of conversation across the industry . In response to unanticipated global inflation , rising interest rates , and supply chain constraints , many offshore wind developers have indicated that their projects — selected through various state solicitations — are no longer financially viable at the awarded prices . Developers with projects selected by Massachusetts and Rhode Island have indicated that they plan to terminate previously awarded OREC agreements with the intent of rebidding the projects at higher prices in future solicitations . Commonwealth Wind , Avangrid Renewables , LLC ’ s 1.2 GW project selected as part of Massachusetts third solicitation in December 2021 , agreed to pay $ 48 million to terminate its agreement . 10 The other project selected by Massachusetts in its third solicitation , Shell New Energies US LLC and Ocean Winds North America ’ s 1.2 GW SouthCoast Project , is expected to terminate its agreement too . In addition , Rhode Island Energy decided to close its 2023 solicitation without making an award , stating the cost of the only bid that it received
8 . Press Release , NJ BPU , New Jersey Board of Public Utilities Selects Offshore Wind Transmission Project Proposed by Mid-Atlantic Offshore Development and Jersey Central Power & Light Company in First in Nation State Agreement Approach Solicitation ( Oct . 26 , 2022 ), https :// nj . gov / bpu / newsroom / 2022 / approved / 20221026 . html .
9 . Press Release , NJ BPU , New Jersey Board of Public Utilities Launches State Agreement Approach 2.0 ( Apr . 26 , 2023 ), https :// nj . gov / bpu / newsroom / 2022 / approved / 20230426 . html .
10 . Mass . Department of Public Utilities , First Amendment to Power Purchase Agreement , Termination Agreement and Release to the Power Purchase Agreements the Companies Have Executed with Commonwealth Wind LLC , Dkt . Nos . 22-70 / 22-71 / 22-72 ( July 13 , 2023 ), https :// fileservice . eea . comacloud . net / FileService . Api / file / FileRoom / 17704745 .