The addition of 3,500 MW of offshore wind capacity would have reduced ISO-NE energy market costs by about $400 million over the past winter, according to a recent study by Daymark Energy Advisors. The study also found the added capacity would have eliminated $128 million in costs associated with a higher capacity price in the Southeast New England capacity zone.
The study, sponsored by clean energy association RENEW Northeast, comes in the wake of the Trump administration’s stop-work order on Revolution Wind, a 704-MW project contracted by Connecticut and Rhode Island that is estimated to be 80% complete. (See BOEM Slaps Stop-work Order on Revolution Wind.)
“This study shows that delays in bringing offshore wind projects online are costing New England families and businesses real money,” said Francis Pullaro, president of RENEW Northeast.
Daymark used historical weather data to estimate the offshore wind production profile over the past winter and compared this forecast production with ISO-NE real-time energy offer data. The firm estimated that the added wind resources would have contributed 3.6 billion kWh of electricity over the winter months, reducing the need for high-cost fossil units. The study also found that the wind resources would have reduced carbon emissions by about 1.8 million tons.
In the capacity market, Daymark noted that a shortage of capacity cleared in the Southeast New England zone caused a higher clearing price ($3.98/kW-month) than the rest-of-pool (ROP) price ($2.611/kW-month). It said the injection of 3,500 MW of offshore wind would have avoided this issue, saving $128 million in capacity costs by substituting the higher zone-specific price with the ROP price, “even after accounting for increased cost of winter excess capacity.”
“The OSW capacity would have also displaced the highest price cleared capacity in ROP, likely decreasing the ROP price,” Daymark added. “Our analysis conservatively assumes no additional savings from this likely outcome.”
New England faced high electricity prices and high consumer energy costs over the past winter due to consistently cold weather.
The region’s power sector has become increasingly reliant on natural gas over the past decade, but gas infrastructure into the region is constrained, leaving it susceptible to large price spikes during cold periods. Gas generators typically do not enter firm gas supply contracts, and gas resources often struggle with gas supply during cold periods when heating demand from gas distribution utilities is high.
According to ISO-NE, energy costs over the past winter were 147% higher than the previous winter, driven by a 179% increase in gas prices, and the total estimated wholesale market cost of electricity increased by about $2.4 billion. (See New England Energy Market Costs Grew by over $2B in 2024/25 Winter.)
The RTO has said offshore wind’s increased production profile during the winter would provide significant reliability benefits by allowing generators to conserve stored fuel. (See ISO-NE Warns Halting Revolution Wind Boosts Reliability Risk.)
However, the offshore wind industry in the region faces an uncertain future due to antagonism from the Trump administration, which has created both short-term challenges and long-term concerns about the ability to attract the investment needed for development.
“With several OSW projects already contracted but delayed, the findings underscore the urgent need to accelerate offshore wind deployment to meet both economic and climate goals,” Pullaro said.
Susan Muller, a senior energy analyst at the Union of Concerned Scientists, said the Daymark study “shows the power of offshore wind to lower energy prices in New England, especially in winter,” and added that “New Englanders need rate relief and a more reliable grid now, and President Trump’s nonsensical decision to stall a nearly completed project cannot stand.”
