Iberdrola’s US subsidiary, Avangrid, has terminated the power purchase agreements (PPA) that it signed for its Park City Wind offshore wind project.
According to Avangrid, the conditions agreed to in the PPAs for the 1.2bn, 804 MW offshore wind farm planned off the coast of Connecticut do not guarantee economic viability.
“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,” the company said in a statement.
Avangrid pointed out that it was the first offshore wind developer in the United States to “announce the unprecedented economic difficulties facing the industry, including record inflation, supply chain disruptions, and sharply rising interest rates.”
Iberdrola’s subsidiary also stated that Avangrid and the Connecticut Electric Distribution Company agreed to terminate PPAs which now allowed all parties the opportunity to pursue “an appropriate path forward.”
“The best path forward for Park City Wind is to complete the power purchase agreements and a new offer for the project,” Avangrid concluded.
Previously, Avangrid terminated the energy purchase and sale contract associated with its 1.2GW Commonwealth Wind project in Massachusetts citing difficult economic viability and paid $48m for violating the agreement.
