Avangrid has called for dismissal of the power purchase agreements for its 1200MW Commonwealth Wind project.
In a filing with the Massachusetts Department of Public Utilities, Commonwealth Wind moved to dismiss the approval process for the PPAs between itself and three electric distribution companies – Eversource, National Grid and Unitil.
The filing argued that the PPAs “do not meet the fundamental statutory threshold that they must ‘facilitate the financing of offshore wind energy generation.'”
The company claimed that it could not find a viable pathway under the current PPAs that would allow that threshold to be met. Under the current contracts, “the project cannot be financed and constructed,” the filing claims.
As such, Avangrid aims to bid into Massachusetts’s fourth solicitation round in April 2023 to offer the state a “cost-effective pricing, a superior timeline for completion, and exceptional economic development opportunities,” the filing said.
In a statement, Avangrid added: “With this step, a competitive process that accounts for the unprecedented changes will ensure that a clean energy project can be built to serve the Commonwealth’s energy needs.
“Avangrid is committed to bidding Commonwealth Wind into that solicitation, and has the utmost confidence, given the advanced stage of the project and its inherent benefits, that it can address the current economic challenges facing the project and offer the most cost-effective pricing; a superior timeline for completion that positions Massachusetts to meet its ambitious 2030 climate target; and the creation of thousands of jobs and transformational economic development opportunities.”
Avangrid had previously decided to continue with approval process after calling for a one-month suspension address the impact of the economic conditions on the PPAs.
It had warned that the project would be unviable under the terms of the contract due to rising commodity prices, interest rates, and supply chain constraints.