MARTHA’S VINEYARD – Avangrid, the parent company behind Commonwealth Wind, has requested that the Massachusetts Department of Public Utilities dismiss its current project contracts amid rising construction costs and frozen pricing negotiations.
Officials said the $10 billion project just south of Martha’s Vineyard is seeing unprecedented challenges related to historic economic inflation and worldwide supply chain disruptions, and dismissal would allow the project to be included in upcoming offshore wind solicitations slated for April of next year.
“With this step, a competitive process that accounts for the unprecedented changes will ensure that a clean energy project can be built to serve the Commonwealth’s energy needs,” said company officials in a statement.
The company said that it has been in contact with Massachusetts state officials regarding the financial obstacles facing the project, including negotiating pricing deals with utilities.
“AVANGRID appreciates their engagement as we worked to find a path forward for the project having invested millions of dollars already in its permitting and development. As building Commonwealth Wind remains our objective, AVANGRID has been disappointed in the Electric Distribution Companies’ refusal to immediately engage on this matter.”
Offshore wind projects would also make a big dent in the state reaching its climate action targets for 2030, with the ultimate goal of net-zero greenhouse gas emissions by 2050.
Avangrid is also the company behind the 800 Megawatt Vineyard Wind 1 project, which remains on-track for a 2024 launch.
Avangrid could not be reached for comment as of this story’s publication.
The full statement from Avangrid can be found here.
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