By Josh Saul (Bloomberg) —
Massachusetts has denied requests from developers to renegotiate electricity contracts for proposed offshore wind farms after soaring inflation drove up construction costs, effectively ordering the renewable energy projects to push ahead.
New England utility Avangrid Inc. asked state regulators last month to cancel the power purchase agreements it made with utilities for a project it is building off the Massachusetts coast. Mayflower Wind, a joint venture by Shell New Energies, EDP Renewables and Engie, also asked regulators in December for a delay in that project. Both developers cited rising costs as a problem, but the regulators on Friday disregarded those requests and approved the contracts.
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“The current power purchase agreements do not allow the company to secure the significant financing needed to construct this critical project, and thus the project cannot proceed under these contracts,” an Avangrid representative said in an email, adding that the company would assess its legal options and work to make sure the project moves forward on schedule.
A representative for Mayflower Wind didn’t immediately provide comment.
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