Massachusetts energy regulatory authorities refuted overseas wind power firm Commonwealth Wind’s activity to suspend its power acquisition arrangement with state electrical energies, questioning regarding the future of Commonwealth’s suggested offshore wind task.
The Massachusetts Department of Public Utilities (DPU) stated in an order on Friday that Commonwealth “is a sophisticated market participant well capable of factoring economic contingencies into its contract prices … and exercising its options under the existing (power purchase agreements).”
Commonwealth is a system of united state power firm Avangrid Inc, which is bulk possessed by Spanish power firm Iberdrola SA.
Commonwealth stated in an October declaring looking for a one-month suspension of the DPU procedures that the task “is no longer viable because of recent global commodity price increases” as a result of “the war in Ukraine, interest rates, supply chain constraints, and persistent inflation.”
Avangrid speaker Craig Gilvarg stated the firm “can present a proposal that would return the project to economic viability” and also means to offer that details to the state in coming days.
In May, Massachusetts energy systems of Eversource Energy, National Grid PLC and also Unitil Corp looked for DPU authorization of 2 long-lasting agreements to buy overseas wind from Commonwealth and also Mayflower Wind.
Commonwealth, nonetheless, stated it “remains committed to the project” and also still anticipates it can get in solution in 2028.
Mayflower, which is possessed by systems of Shell PLC and also Ocean Winds, stated the DPU must approve Commonwealth’s activity “to address the impact of current extraordinary global economic conditions” on the arrangements.
Ocean Winds is possessed by systems of Portuguese power firm EDP Energias de Portugal SA’s majority-owned EDP Renov áveis SA and also France’s ENGIE SA.
The DPU stated Commonwealth and also Mayflower should choose whether they plan to move on with their legal responsibilities or submit a demand to disregard the procedures.
(Reuters – Reporting by Scott DiSavino; modifying by Grant McCool)
