The US state of Massachusetts has activated the Vineyard Wind offtake contracts, which are expected to save its residents $1.4bn in electricity bills over the next 20 years.

This past winter, Vineyard Wind lowered electricity prices by competing in wholesale electricity markets, consistently offering lower prices than other electricity sources.

The activation of the utilities’ contracts on behalf of Massachusetts customers further lowers the price of electricity generated by Vineyard Wind. These contracts are expected to provide customers in Massachusetts with an average of 1.4 cents per kWh in direct-bill savings, at a price that’s less than half of this winter’s peak price.

“Throughout one of the coldest winters in recent history, Vineyard Wind turbines powered our homes and businesses at a low price, and now that price goes even lower with the activation of these contracts. Especially as President Trump is taking energy sources off the table and raising prices with his war in Iran, we should be leaning into more American-made wind power to lower costs, create jobs, and make our country more energy-independent,” said Massachusetts governor Maura Healey.

“This also demonstrates the value of these long-term contracts, which are carefully vetted to maximise customer savings, bring on the supply we need, and get projects off the ground,” added energy and environmental affairs secretary Rebecca Tepper.

Offshore wind is a critical energy resource in the Northeast and is uniquely positioned to meet the New England region’s winter peak demand for electricity. Offshore wind has its highest output in the coldest winter months when the New England grid is most constrained. A recent report from Acadia Centre found that during the week-long deep freeze earlier this year, wind generation peaked, reaching near-record levels.

The report explained that offshore wind would have saved New England ratepayers at least $400m in utility costs during the winter of 2024/2025, lowering energy market prices by 11% and insulating ratepayers from the high, volatile prices of natural gas.

Vineyard Wind is an 806MW project located off the coast of Massachusetts. It has been producing power since January 2024. The project began construction in late 2022. The project has created nearly 4,000 jobs and delivered $1.94bn in total economic output.