Investor-owned utility Avangrid Inc. is backing out of its power purchase agreements for the Park City Wind offshore project, an 804 MW development that has been in the works since 2019.
The company cites a trio of major challenges – inflation, supply chain problems and high interest rates – as the cause for the pivot, saying “the aggregate impact [has] rendered the Park City Wind project unfinanceable under its existing contracts.”
“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,” Avangrid said in a statement.
Avangrid had signed PPAs with Connecticut’s major electric distribution companies for the power offtake of the project, which was envisioned for Long Island Sound.
No details have been released, but Avangrid says it plans to rebid the project.