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Avangrid Inc (NYSE:AGR), the US subsidiary of Spanish electric utility Iberdrola SA (BME:IBE), has agreed with the Connecticut Electric Distribution Companies to terminate the power purchase agreements (PPAs) for the 804-MW Park City Wind offshore project.
“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 press release.
The announcement comes a year after Avangrid signaled that the sector was facing unprecedented economic headwinds. It said that record inflation, supply chain disruptions and sharp interest rate hikes have rendered the particular project unfinanceable under its existing contracts. The company believes that canceling these contracts will enable all parties “to pursue an expedient path forward.”
The Park City project was awarded a contract to supply clean power to Connecticut in 2019.
In August, Avangrid also moved to terminate the Massachusetts PPAs for its 1,200-MW Commonwealth Wind project.
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