Avangrid, part of the Iberdrola Group, has filed a motion seeking a one-month suspension of the review of its Commonwealth Wind offshore wind project in the US ‘because it is no longer viable’
The motion filed with the Massachusetts Department of Public Utilities (DPU) seeks one-month suspension in the Department’s review of power purchase agreements (PPAs) for Commonwealth Wind.
Commonwealth Wind is a 1,232-MW offshore wind project that is due to be developed in an area 22 miles south of Martha’s Vineyard that was designated by the federal government in 2015. The area is just south of the Park City Wind offshore wind project.
In a statement, Avangrid said, “In response to unprecedented economic challenges facing all major infrastructure projects – including historic price increases for global commodities, sharp and sudden increases in interest rates, prolonged supply chain constraints and persistent inflation – Avangrid has filed a motion with the Massachusetts Department of Public Utilities seeking a one-month suspension in the review of the PPAs for the Commonwealth Wind project.”
The company said a one-month suspension in the proceeding would provide an opportunity for Avangrid, the Massachusetts Electric Distribution Companies, state and regulatory officials, and stakeholders to evaluate the current economic challenges facing Commonwealth Wind and assess measures that would return the project to economic viability “including, but not limited to, modest changes to the PPAs.”
Avangrid said Commonwealth Wind “remains the best possible solution for Massachusetts to meet its ambitious clean energy and climate goals, and despite historic global headwinds, the project is well-placed to reach commercial operations in 2028, help the state achieve its 2030 emissions reduction target, and provide significant environmental and economic benefits to the Commonwealth and its ratepayers.”
