Iberdrola subsidiary asks to annul contracts for large wind project in the US

By: MRT Desk

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Iberdrola subsidiary asks to annul contracts for large wind project in the US

The US subsidiary of Iberdrola (BME:IBE), Avangrid, announced on Friday that it has requested that the review of the contracts for the sale of energy from a large offshore wind farm in Massachusetts (northeast of the USA) be abandoned, considering that the project is not viable in those terms due to the current economic situation.

In a statement, Avangrid explained that it has requested the state authorities this measure in order for those contracts to be offered again in a call scheduled for April 2023.

According to the company, this step would ensure a “competitive process that takes into account the unprecedented changes” that have occurred and that would ensure that the project can be built.

At the end of October, Avangrid had already asked to suspend for a month the review of the power purchase contracts for this wind farm, known as Commonwealth Wind, while ways were sought to make the project viable again.

“Despite unprecedented challenges in the global economy in the form of supply chain disruptions, historic levels of inflation and interest rate hikes, Avangrid has held good faith and productive discussions with Massachusetts state officials about these challenges and the need to restore the economic viability of the project.” The company said today.

Avangrid reiterated that its goal remains to build the infrastructure, so it was “disappointed” by the refusal of the energy distribution companies that had signed the contracts to renegotiate.

The park is expected to have an installed capacity of 1,232 megawatts (MW) and to mobilize an investment close to 4,000 million dollars.

According to Iberdrola, the new installation is presented as a “key” project for the United States to reach the goal of reaching 30,000 MW of offshore wind capacity by 2030.

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