Avangrid moves to cancel major Massachusetts wind farm project

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By Liese Klein

Citing supply-chain disruptions, inflation and rising interest rates, Orange-based Avangrid defended its decision last week to pull back from a major wind farm planned for Massachusetts.

The Boston Globe reported last week that Avangrid had filed with Massachusetts state regulators to end its contracts to build the 1,200-megawatt Commonwealth Wind project south of Martha’s Vineyard.

Avangrid said it was seeking to dismiss the state’s review of its current contracts in favor of a new 2023 bid for a 1,200-watt project.

Avangrid had partnered with three utilities on Commonwealth Wind, planned as a major component of the state’s power grid that would eventually generate enough power for up to 750,000 homes.

In a statement released Dec. 16, the company said, “Despite unprecedented challenges in the global economy in the form of supply chain disruptions, historic levels of inflation, and rising interest rates, Avangrid has engaged in good faith and productive discussions with Massachusetts state officials regarding these challenges and the need to restore the project to economic viability.”

As economic challenges mounted, Avangrid had announced a later completion date for the project and was negotiating with the utilities, but a filing with the state’s Department of Public Utilities marked the end of negotiations, the Globe reported.

“As building Commonwealth Wind remains our objective, Avangrid has been disappointed in the electric distribution companies’ refusal to immediately engage on this matter,” the company said in its statement.

Avangrid began construction this year on another Massachusetts wind farm, the 800-megawatt Vineyard Wind 1 joint venture.

“We are proud that Vineyard Wind 1 is a turning point moment for the U.S. and launches a brand new American clean energy industry that will create thousands of jobs, improve our energy security, and help address the climate emergency,” the company said in the statement.

Massachusetts picked Avangrid to build Commonwealth Wind in 2021. The wind farm would have been the largest in New England, creating 11,000 jobs over its lifetime and helping the state meet its ambitious climate goals.

Contact Liese Klein at lklein@newhavenbiz.com.