Maryland Ups US Wind’s Capacity Award to 1.7 GW

The Maryland Public Service Commission (PSC) has awarded US Wind additional offshore wind renewable energy credits (ORECs) for the company’s projects off the Maryland coast, which now total 1.7 GW in generation capacity.

The PSC announced on 24 January that it approved US Wind’s rebid application and awarded the developer the additional ORECs under a state law enacted in May 2024 by Governor Wes Moore. The law required the Commission to open an offshore wind proceeding limited to evaluating revised project schedules, sizes, or pricing for a previously approved Round 2 offshore wind project and to review similar requests for Round 1 offshore wind projects. US Wind was the only applicant in this round, the PSC says.

In the first two offshore wind rounds, held in 2017 and 2021, US Wind was awarded ORECs to support more than 1,056 MW across two projects.

Under the law introduced in May 2024, US Wind filed an application in July 2024 to sell 6,966,836 MWh of offshore wind energy to Maryland annually, supporting the 1,710 MW buildout of the company’s entire federal lease area, with 840 MW proposed for OREC Round 1 and 870 MW proposed for OREC Round 2. 

Through the now-approved state application, US Wind will build the 1,710 MW project in four phases that will see 114 wind turbines, each with a 15 MW capacity, installed offshore Maryland.

The first phase is expected to reach commercial operation in 2029 while the three remaining phases have an anticipated commercial operation date (COD) of December 2030, with the first year of the respective OREC schedules beginning in January 2031.

US Wind’s combined offshore wind development absorbs the capacity left over when, in January 2024, Skipjack Energy relinquished the ORECs it had been awarded in the first two rounds, according to the PSC.

The Commission said on 24 January that in its review, it found that US Wind’s combined project meets the requirement for Round 1 and Round 2 by not exceeding the statutory thresholds of USD 1.50 per month (EUR 1.44/month) and USD 0.88 per month (EUR 1.44/month) for an average residential customer and 1.5 per cent per year and 0.9 per cent per year for an average non-residential customer for Rounds 1 and 2 respectively.

With its application, US Wind also recommitted to establishing Maryland’s first offshore wind factory – Sparrows Point Steel – in Baltimore County and facilitates the development of Maryland’s first offshore wind cable manufacturing facility in Baltimore City, Hellenic Cables, the developer said last year after submitting its updated proposal to the PSC.

Following the approval of the company’s proposal, Maryland PSC Chair, Frederick H. Hoover, said the decision would advance the development of a project which would ensure a clean energy supply to the state and bring significant energy, economic, environmental, and health benefits.

“While questions have arisen regarding offshore wind development in a number of places, the Commission’s analysis through the independent consultant and our hearings demonstrated the importance of this project in providing emission-free energy, jobs, economic opportunity and cost benefits to Maryland ratepayers”, said Frederick H. Hoover.

The US Bureau of Ocean Energy Management (BOEM) approved the Construction and Operations Plan (COP) for US Wind’s Maryland offshore wind projects in December 2024.