The four investor owned utilities in Massachusetts (National Grid, NStar, Western Massachusetts Electric Co., and Unitil Corp.) recently demonstrated their commitment to renewable energy as a viable alternative energy option in the Commonwealth. An article in today’s Boston Globe states that the utilities are seeking bids from producers of renewable energy for long-term energy contracts to sell power to the utilities. This news followed the announcement from Massachusetts Department of Energy Resources (DOER) in mid-January stating that they are working to fulfill the provision of the Green Communities Act, which requires Massachusetts electric distribution companies to enter into 10- to 15-year contracts with renewable energy projects located within state boundaries. The DOER began working with the four utilities to coordinate the competitive solicitation for long-term renewable energy contracts, which was was formally issued on January 15, with bids due to electric distribution companies on February 19.
The initiation of the solicitation process represents a significant step forward for the sustainability of renewable energy development and generation in Massachusetts. The ability to sign long-term contracts provides renewable energy projects with increased financial certainty, and therefore, helps to increase the project’s ability to attract investors. For example, when Ze-gen begins to commercialize our process, in order to finance the construction and operation of the facility, a long-term power purchase agreement will help to make the financing much more attractive. This is true not just for Ze-gen, but for other alternative energy developers, such as solar and wind projects as well, which means these contracts will help to further diversify and increase the State’s energy portfolio. Helping to ensure financial certainty for renewable energy projects will go a long way toward Massachusetts to fulfill its energy goals.




