Massachusetts Delays Round 5 Bid Acceptance on Our Website
Massachusetts Delays Offshore Wind RFP Until 2026
The Massachusetts Department of Energy Resources (DOER) has announced that the Round 5 Request for Proposals (RFP) for offshore wind will not be issued until at least 2026. The delay is primarily due to ongoing uncertainty at the federal level, including issues related to federal permitting, tax credits, and tariffs.
The previous Round 4 solicitation, launched on 30 August 2023, selected Ocean Winds' SouthCoast Wind, Avangrid's New England Wind 1, and Copenhagen Infrastructure Partners' (CIP) Vineyard Wind 2. However, CIP later withdrew Vineyard Wind 2 from contract negotiations. The signing of the contracts between Round 4 winners and Massachusetts Electric Distribution Companies (EDCs) remains incomplete as of mid-2025, with the signing now pushed back to be completed by December 31, 2025.
The delay in finalizing contracts for Round 4 winners is a key factor impacting the timing of Round 5. Potential bidders have overwhelmingly favoured postponing Round 5 until federal issues clarify. The DOER received feedback from potential bidders and public stakeholders regarding the Round 5 RFP, showing a strong preference for moving the RFP to 2026 at the earliest.
The Presidential Memorandum halting federal permitting of wind projects and ensuing litigation challenging that Memorandum are part of the reasons for the delay. By law, under Section 83C of the Green Communities Act, Massachusetts must maintain a staggered procurement schedule with no more than 24 months between solicitations. Since Round 4 started at the end of August 2023, the Round 5 RFP would need to be issued by August 2025 at the latest. The delay means the state is likely to seek approval for an extension given these exceptional circumstances.
The DOER had previously issued a Request for Public Comment to gather feedback on prospective bidders' intent to bid in Round 5 and a preferred procurement schedule. The DOER does not expect to submit a draft 83C Round 5 RFP to the DPU until at least 2026.
In summary, the current status is that the Round 5 RFP will not be issued until 2026 at the earliest, contingent on resolution of federal uncertainties and completion of Round 4 contract negotiations, now targeted to close by December 31, 2025. The ongoing Round IV contract negotiations and federal policy uncertainty are causing a delay in the state's next RFP solicitation.
- With delays in finalizing contracts for Round 4 winners and ongoing uncertainty at the federal level, potential investors in the offshore wind industry may find it challenging to make finance decisions until the issues are clarified.
- The delay in issuing the Round 5 RFP for offshore wind in Massachusetts means that the energy sector, which heavily relies on investments, may experience a slower pace of development in the near future.
- The finance industry, particularly those focusing on renewable energy projects, will need to reconsider their investment strategies regarding offshore wind endeavors in Massachusetts until the regulatory environment becomes more certain.
