Avangrid has sought a one-month suspension in the Massachusetts Department of Public Utilities’ (DPU’s) review of the Power Purchase Agreements for the Commonwealth Wind project.
According to a filing with the DPU, under the current PPAs, the project is no longer viable and would not be able to move forward.
The delay would allow the parties to consider relevant developments that have occurred since Commonwealth Wind bid into the state’s third solicitation. This includes whether the project remains economic and whether it can be financed under the current terms of the PPAs.
In addition, the suspension would also enable the parties to find ways to restore the Commonwealth Wind project’s viability. This includes cost saving measures, tax incentives, increasing the PPA prices, and improving project efficiencies.
This could also involve determining whether additional time beyond the one-month requested period is needed to resolve the issues.
According to a company statement, Avangrid said that the decision was made “in response to the 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”.
The statement added: “A one-month suspension in the proceeding provides a needed 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.
“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-positioned 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.”