Vineyard Wind Contracts Lower Electricity Prices for Massachusetts Customers

Vineyard Wind Contracts Lower Electricity Prices for Massachusetts Customers 

With the Activation of the Vineyard Wind Contracts, Nation’s First Utility-Scale Project will Save Massachusetts Customers $1.4 Billion 

 

BOSTON – The Healey-Driscoll Administration today is announcing the activation of the Vineyard Wind contracts, which ensure stable, affordable prices for 20 years and save Massachusetts customers a projected $1.4 billion on electricity bills over the next 20 years. 

 

“Vineyard Wind is a key part of our all-of-the-above strategy to lowering energy prices,” said Governor Maura Healey. “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. Especially as President Trump is taking energy sources off the table and increasing prices with his war in Iran, we should be leaning into more American-made wind power to lower costs, create jobs, and make our country more energy independent. Massachusetts is uniquely positioned to lead on this and deliver major savings to our residents.” 

 

“Offshore wind is a homegrown Massachusetts industry, and we’re going to keep supporting these important projects,” said Lieutenant Governor Kim Driscoll. “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 electricity markets, consistently offering lower prices than other sources of electricity. Today’s activation of the utilities’ contracts on behalf of Massachusetts customers further lowers the price of electricity generated by Vineyard Wind. These 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. The project has created nearly 4,000 jobs, and delivered $1.94 billion in total economic output. It will reduce carbon emissions by more than 1.6 million metric tons per year, the equivalent of taking 325,000 cars off the road annually or burning more than 3.7 million barrels of oil. 

 

“The activation of the Vineyard Wind contract is an important milestone on the road to lower energy prices and a strong offshore wind industry,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “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.” 

 

“This is a historic day in Massachusetts’ energy journey,” said Energy Resources Commissioner Elizabeth Mahony. “This plentiful resource right off our coast provides residents and businesses with clean, low-cost electricity that is essential to meet our growing demand. During this past winter’s extreme cold, we also saw how the project provided needed power reliability for Massachusetts and New England.” 

 

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. 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. 

 

The Healey-Driscoll Administration continues to work on many fronts to bring more energy into Massachusetts to lower energy bills and meet the rising demand for electricity. Last month, the Governor issued an executive order to add 10 gigawatts of new energy resources by 2035, which will lead to an estimated savings of $10 billion for Massachusetts residents and businesses. Governor Healey filed the Energy Affordability, Independence, and Innovation Act to lower energy bills and bring more supply into Massachusetts, including enhanced state energy procurement authority, which could help support more cost-effective projects like Vineyard Wind. She also took $180 million off people’s gas and electric bills this winter, bringing the total savings to $300 million over two 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.