“Offshore wind has arrived,” says Erich Stephens, chief development officer for Vineyard Wind, a developer based in New Bedford, Massachusetts, that is backed by Danish and Spanish wind energy firms. He explains that the costs have fallen enough to make developers take it seriously. “Not only is wind power less expensive, but you can place the turbines in deeper water, and do it less expensively than before.”
Last week, the Massachusetts Department of Public Utilities awarded Vineyard Wind a 20-year contract to provide electricity at 8.9 cents/kilowatt-hour. That's about a third the cost of other renewables (such as Canadian hydropower), and it's estimated that ratepayers will save $1.3 billion in energy costs over the life of the deal.