Avangrid appeals Massachusetts green light for ‘uneconomic’ US offshore wind farm

Avangrid has appealed the Massachusetts regulators’ approval of contracts for the 1.2GW Commonwealth Wind offshore wind project. 

In late December, the Department of Public Utilities (DPU) ruled that the project – along with Mayflower – was  viable and would be completed in a commercially reasonable timeframe. The April 2022 contracts are “in the public interest,” according to the DPU.

But Avangrid has said the power purchase agreements (PPAs) are now too low because of inflation, high interest rates and supply chain bottlenecks. The project is not financially viable and cannot be built unless the PPAs are raised, Avangrid has argued. 

Massachusetts has an aggressive climate target and is seeking to procure 5.6GW of offshore wind no later than mid-2027. Commonwealth is the largest wind project currently planned off Massachusetts. 

In a statement after the appeal was filed, the wind developer said: “Avangrid remains committed to advancing the 1.2GW Commonwealth Wind project and delivering this needed clean, reliable power to Massachusetts…..In order to preserve its rights, Avangrid filed notice of appeal of the Department’s order approving the PPAs.”

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