Avangrid, a member of the Iberdrola Group, and the Connecticut Electric Distribution Companies have agreed to terminate power purchase agreements (PPAs) for the Park City Wind offshore project.
The developer said it plans to rebid the 804 MW Park City Wind in the upcoming auctions.
”One year ago, Avangrid was the first offshore wind developer in the United States to make public the unprecedented economic headwinds facing the industry including record inflation, supply chain disruptions, and sharp interest rate hikes, the aggregate impact of which rendered the Park City Wind project unfinanceable under its existing contracts,” Avangrid said.
”Since that time, Avangrid has been transparent and collaborative, working diligently with state and federal officials and stakeholders to find solutions to the economic challenges facing Park City Wind as we continued to advance the permitting and development of the project. After exploring all potential solutions to the financial challenges facing the project, and engaging in good-faith and productive discussions with Connecticut state officials regarding these challenges, it is clear the best path forward for Park City Wind is in the termination of the Power Purchase Agreements and a rebid of the project.”
Earlier this year, Avangrid and the Massachusetts electric distribution companies agreed to terminate the PPAs for the 1.2 GW Commonwealth Wind offshore wind project, with Avangrid agreeing to pay USD 48 million in penalties for the termination.
Similarly to Park City Wind, the decision to terminate the PPAs for the Commonwealth Wind project was made due to ”historic price increases for global commodities, sharp and sudden increases in interest rates, prolonged supply chain constraints, and persistent inflation”.
Avangrid plans to rebid the Commonwealth Wind project in the upcoming auctions as well.
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Avangrid, in cooperation with Copenhagen Infrastructure Partners, is also the developer of the 804 MW Vineyard Wind 1, the first commercial-scale offshore wind farm in the USA. Turbine installation is currently ongoing at the site some 24 kilometres off the coast of Massachusetts.