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New Energy

Massachusetts Orders Costly Offshore Wind Projects to Push Ahead

  • Regulator denies developers’ requests to renegotiate contracts
  • Avangrid says current agreement creates financing hurdles

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.