More obvious evidence of the troubled low-output/high cost wind power industry.*
Offshore Wind Company Wants To Pay Large Fine To Break Contract In Latest Sign Of Trouble For Industry
Avangrid, a major offshore wind company, is poised to pay a considerable fine to get out of its power purchase agreements (PPAs) with utility companies pursuant to its Park City project off the Massachusetts coast.
The PPA termination is the latest sign of trouble for the offshore wind industry, which has been struggling as inflation, supply chain disruptions and spiking interest rates slice into projected profit margins in the wake of the Inflation Reduction Act’s passage.
“One year ago, Avangrid was the first offshore wind developer in the United States to make public the unprecedented economic headwinds facing the industry including record inflation, supply chain disruptions and sharp interest rate hikes, the aggregate impact of which rendered the Park City Wind project unfinanceable under its existing contracts,” Avangrid said in a Monday statement.
A major offshore wind company requested to cancel contracts with two utility companies in the Northeast on Monday after macroeconomic factors have eaten into the East Coast project’s profitability, UtilityDrive reported.
Offshore wind developer Avangrid filed a request to terminate power purchase agreements (PPAs) with Eversource Energy and United Illuminating for its Park City Wind project, which was set for construction off of the Massachusetts coast, according to UtilityDive. Avangrid cited inflation, supply chain backups and higher interest rates as the driving motivations for their termination requests, and the company could stand to pay fines totaling approximately $16 million if the Connecticut Public Utilities Regulatory Authority (PURA) approves the requests.
“One year ago, Avangrid was the first offshore wind developer in the United States to make public the unprecedented economic headwinds facing the industry including record inflation, supply chain disruptions and sharp interest rate hikes, the aggregate impact of which rendered the Park City Wind project unfinanceable under its existing contracts,” the company said in a Monday statement. “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.”
https://www.msn.com/en-us/money/com...p&cvid=39c1bc99373048188f3623b721d989c0&ei=33
OOOPS!
Offshore Wind Company Wants To Pay Large Fine To Break Contract In Latest Sign Of Trouble For Industry
Avangrid, a major offshore wind company, is poised to pay a considerable fine to get out of its power purchase agreements (PPAs) with utility companies pursuant to its Park City project off the Massachusetts coast.
The PPA termination is the latest sign of trouble for the offshore wind industry, which has been struggling as inflation, supply chain disruptions and spiking interest rates slice into projected profit margins in the wake of the Inflation Reduction Act’s passage.
“One year ago, Avangrid was the first offshore wind developer in the United States to make public the unprecedented economic headwinds facing the industry including record inflation, supply chain disruptions and sharp interest rate hikes, the aggregate impact of which rendered the Park City Wind project unfinanceable under its existing contracts,” Avangrid said in a Monday statement.
A major offshore wind company requested to cancel contracts with two utility companies in the Northeast on Monday after macroeconomic factors have eaten into the East Coast project’s profitability, UtilityDrive reported.
Offshore wind developer Avangrid filed a request to terminate power purchase agreements (PPAs) with Eversource Energy and United Illuminating for its Park City Wind project, which was set for construction off of the Massachusetts coast, according to UtilityDive. Avangrid cited inflation, supply chain backups and higher interest rates as the driving motivations for their termination requests, and the company could stand to pay fines totaling approximately $16 million if the Connecticut Public Utilities Regulatory Authority (PURA) approves the requests.
“One year ago, Avangrid was the first offshore wind developer in the United States to make public the unprecedented economic headwinds facing the industry including record inflation, supply chain disruptions and sharp interest rate hikes, the aggregate impact of which rendered the Park City Wind project unfinanceable under its existing contracts,” the company said in a Monday statement. “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.”
https://www.msn.com/en-us/money/com...p&cvid=39c1bc99373048188f3623b721d989c0&ei=33
OOOPS!