The developer of an offshore wind farm in Massachusetts has asked regulators to rework a power purchase agreement signed in April, saying that the project is "no longer viable" under the current terms.
In a filing with the Massachusetts Department of Public Utilities dated Oct. 20, Commonwealth wind developer AVANGRID said that the 1,200 MW project 20 miles south of Martha's Vineyard has been negatively impacted by global commodity price increases, raising interest rates, and inflation.
AVANGRID requested a one-month delay to the PPA review process, which the company said would allow all parties to potentially agree to changes to the contract that would salvage the project.
Incentives for clean energy included in the Inflation Reduction Act (IRA) could also impact the project, though AVANGRID said that IRA alone cannot save Commonwealth Wind.
The company said it believes potential opportunities may exist to “share benefits associated with the IRA” with ratepayers and that it “would be willing to explore those opportunities” with stakeholders.
Commonwealth Wind is expected to reach commercial operation in 2028.
