Rhode Island Energy has decided that it will not be moving forward on a long-term power purchase agreement (PPA) with Orsted and Eversource for the companies’ joint offshore wind proposal, known as Revolution Wind 2, which would have added 600 to 1000 megawatts of clean energy to the state’s electric grid. 

The decision comes after a thorough, four-month evaluation of the bid, which was completed in consultation with the Rhode Island Office of Energy Resources (OER) and the Division of Public Utilities and Carriers (Division). Rhode Island Energy said the proposal did not meet all the requirements as detailed in the Affordable Clean Energy Security (ACES) Act. 

“We recognize some will be disappointed that we didn’t choose to move forward on negotiating this PPA, but that doesn’t mean we are abandoning our commitment to offshore wind in Rhode Island,” said Dave Bonenberger, president of Rhode Island Energy. “In fact, we are already in discussions with state and regional leaders about new opportunities to bring more offshore wind to the state, which we hope to progress in the coming months.”   

The joint proposal from Orsted and Eversource was the only bid received by Rhode Island Energy in response to its Request for Proposals (RFP) that was issued in October 2022. In the next 60 days, the company will provide a comprehensive filing with the Rhode Island Public Utilities Commission detailing its decision. It will provide elements of why the proposal did not meet the ACES requirement “to reduce energy costs” and other factors that scored low in the evaluation. OER and the Division will also file comments, and the bidders will also have an opportunity to respond to those findings.

“The economic development benefits included in the proposal were weighted and valued appropriately by our evaluation team, but ultimately it was determined those features did not outweigh the affordability concerns and other ACES standards,” Bonenberger added.

Following the decision, the Conservation Law Foundation (CLF) reacted by highlighting its disappointment and discomfort in advancing Rhode Island's energy transition. 

“The climate crisis is already affecting communities here in Rhode Island,” said CLF staff attorney James Crowley. “We need new offshore wind resources to provide clean, renewable energy, and it’s extremely disappointing that the state’s latest procurement process has not resulted in any new development. Ramping up the development of clean energy is a major response to the crisis we’re facing, and the state needs to get moving.”