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Massachusetts Wind Power Project ‘No Longer Viable’ Without Contract Adjustments, Says Developer

The developer for a major offshore wind power project in Massachusetts has asked state regulators to pause review of the contract for one month, saying that global price hikes, inflation and supply chain shortages are disrupting the plan.

The Commonwealth Wind project, which would supply 1,200 megawatts of offshore wind power starting in 2028, “is no longer viable and would not be able to move forward” without amendments to the power purchase agreement (PPA), according to a motion recently filed by the developer.

Attorneys for Commonwealth Wind in the motion cited global commodity price increases, in part because of the war in Ukraine, the sudden spike in interest rates, prolonged supply chain constraints and persistent inflation as reasons for the increased expected cost of construction.

“A one-month suspension would give the parties an opportunity to evaluate the current situation facing the project and potentially agree upon changes to the PPAs … that could allow the project to return to viability,” they wrote.

Continue reading at cnbc.com.

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