SouthCoast Wind, a 50/50 joint venture between Shell New Energies US LLC and Ocean Winds North America, has initiated discussions seeking to scrap its existing power purchase agreements (PPAs) for 1.2 GW of offshore wind with the Massachusetts electric distribution companies (EDCs).
In a pre-filed direct testimony with the Rhode Island Energy Facility Siting Board dated June 2, SouthCoast Wind Energy LLC’s chief executive Francis Slingsby explained that the PPAs no longer make economic sense due to inflation, rising interest rates and supply chain issues. According to the developer, further negotiations with the EDCs and the state of Massachusetts will not result in solutions to the challenges arising from the adverse economic conditions.
SouthCoast Wind sees participation in the recent fourth Massachusetts offshore wind solicitation proposal as the path forward for the project, which was previously called Mayflower Wind.
The joint venture remains committed to developing the full capacity of its lease area which could hold 2.4 GW.
The filing, which is in relation to an application for transmission facilities, was reported by the Providence Journal.
Avangrid Renewables LLC is similarly looking to rebid its 1.2-GW Commonwealth Wind project in Massachusetts’ upcoming tender.
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