Avangrid seeks to delay review of power purchase agreements amid concern about the wind project’s viability
US sustainable energy company Avangrid Renewables, a subsidiary of Avangrid and part of the Iberdrola Group, has filed a motion with the Massachusetts Department of Public Utilities (DPU) seeking a one-month suspension in the department’s review of power purchase agreements (PPAs) for the Commonwealth Wind project that is to be developed south of Martha’s Vineyard.
The motion states that the suspension “would allow the parties to examine the effect of unprecedented commodity price increases, interest rate hikes and supply shortages on the overall viability of Commonwealth Wind’s offshore wind generation project … including whether it remains economic and whether it can be financed under the current terms of the PPAs.
“The suspension would also enable the parties to consider potential approaches to restore the project’s viability.”
Avangrid indicates in the motion that the project “is no longer viable and would not be able to move forward” under the current PPAs.
In a statement related to the motion, Avangrid said the suspension would provide “a needed opportunity” for it, along with the Massachusetts Electric Distribution Companies, state and regulatory officials, and stakeholders to evaluate the project’s current economic challenges and assess measures that would return the project to economic viability including, but not limited to, modest changes to the PPAs.
