Massachusetts regulators have approved SouthCoast Wind’s proposal to walk away from its power purchase agreements (PPAs).
The Department of Public Utilities has approved a proposal under which the wind farm’s developers will pay $60 million in termination fees and be able to end their contracts with three local utilities. The $60 million will be rebated to customers.
The idea is to rebid the project in a future auction, with the hope of getting higher-priced PPAs. Offshore wind projects have been pummelled by rising costs and supply chain disruptions.
SouthCoast is being developed by Shell New Energies and Ocean Winds North America, a joint venture of EDP Renewables and Engie.
Avangrid, the developer of the 1.2GW Commonwealth Wind project off Massachusetts, has also agreed to pay a fine of $48 million to cancel its PPAs with local utilities.
And earlier this week, Avangrid reached an agreement to cancel its PPAs for the Park City offshore wind farm off Connecticut.