Revolution Wind has started supplying electricity to the New England regional grid from its offshore site. The 704 MW facility is a joint venture between Skyborn Renewables and Ørsted.
The project is expected by the joint venture to supply enough power for more than 350,000 homes and businesses. These states have entered 20-year, fixed-price agreements (subsidies) with the developer to provide "price certainty and stability" for utility customers.
Wholesale energy costs in New England could decrease by as much as $500 million annually once the project is fully operational, according to the Connecticut Department of Energy and Environmental Protection.
However, offshore wind developments have drawn scrutiny regarding high construction costs and its reliance on taxpayer-funded subsidies for economic viability.
ISO New England, the regional grid operator, noted the "importance" of offshore wind for grid reliability during winter months when prices often spike.
To support its operations in the country, Ørsted stated it is investing nearly $700 million into domestic shipbuilding and vessel contracts.