Massachusetts regulators have approved SouthCoast Wind’s proposal to walk away from its power purchase agreements (PPAs).
The Department of Public Utilities has approved a proposal under which the wind farm’s developers will pay $60 million in termination fees and be able to end their contracts with three local utilities. The $60 million will be rebated to customers.
The idea is to rebid the project in a future auction, with the hope of getting higher-priced PPAs. Offshore wind projects have been pummelled by rising costs and supply chain disruptions.
SouthCoast is being developed by Shell New Energies and Ocean Winds North America, a joint venture of EDP Renewables and Engie.
Avangrid, the developer of the 1.2GW Commonwealth Wind project off Massachusetts, has also agreed to pay a fine of $48 million to cancel its PPAs with local utilities.
And earlier this week, Avangrid reached an agreement to cancel its PPAs for the Park City offshore wind farm off Connecticut.
.png)
.jpg)
