The developer of Commonwealth Wind in Massachusetts asked state regulators to dismiss their review of power purchase agreements tied to the 1,223 MW offshore wind farm.
Avangrid has cited economic conditions such as supply chain disruptions, inflation, rising interest rates and cost increases for offshore wind equipment. The company said the project “cannot be financed and built under the current PPAs.”
In asking Massachusetts regulators to pull the deal, Avangrid said it planned to re-bid the project in an upcoming solicitation in April 2023, the company said in a recent filing.
In late-October the developer asked the Massachusetts Department of Public Utilities (DPU) to rework the Commonwealth Wind PPA, which was signed in April.
AVANGRID requested a one-month delay to the PPA review process, which the company said would allow all parties to potentially agree to changes to the contract that would salvage the project. But since that time the company said Eversource Energy, National Grid and Unitil refused to renegotiate the agreements.
“As building Commonwealth Wind remains our objective, AVANGRID has been disappointed in the Electric Distribution Companies’ refusal to immediately engage on this matter,” said a statement from Avangrid.
The company said while incentives for clean energy included in the Inflation Reduction Act (IRA) could also impact the project, though AVANGRID said that IRA alone could not save Commonwealth Wind.
Commonwealth Wind, to be located 20 miles south of Martha’s Vineyard, was targeted to reach commercial operation in 2028.
Along with Copenhagen Infrastructure Partners, Avangrid is also developing the 800 MW Vineyard Wind 1 wind farm near Martha’s Vineyard and Nantucket. The project is on track to be complete in 2024.
