BOSTON — Negotiations will continue on two Massachusetts offshore wind projects that developers have declared financially unviable.
Commonwealth Wind and Mayflower Wind in October requested the state Department of Public Utilities pause its review of the power purchase agreements they had struck with Eversource Energy, National Grid and Unitil for two planned wind farms. The developers said inflation, supply chain problems and other factors had altered the economics of the projects, which are rated at a combined 1.6 GW.
The DPU rejected the request and directed the developers to continue with the PPAs as originally negotiated or file a request to dismiss the proceedings. (See Mass. Rejects Delay of Offshore Wind Review.)
In a notice to the DPU on Nov. 7, Mayflower withdrew its motion to suspend review and said it will seek to resolve the financial issues through conversation with the state and the three electric distribution companies.
Commonwealth filed a similar notice Nov. 14, saying if the DPU would not support a pause, the appropriate course of action would be to continue with the proceeding and discuss contract changes or other ways to make the project financeable and economically viable.
Eversource, National Grid and Unitil told the DPU on Nov. 1 that they have no intention of renegotiating the PPAs.
Commonwealth, the larger of the two projects at 1.2 GW, is being developed by Avangrid (NYSE:AGR). In a statement late Monday, the company said, “We have been transparent and committed, at all times, to doing everything we can to move the project forward, including coming to the table with all parties to find a solution to the unprecedented economic challenges facing this major infrastructure project. …
“Ensuring Commonwealth Wind is able to move forward is squarely in the public interest and the best possible outcome for Massachusetts and its ratepayers, and we look forward to continued engagement so this project can deliver on its immense economic and environmental benefits and help the state achieve its ambitious 2030 climate target.”
