Head winds: Avangrid terminates Park City offshore power agreement.

Avangrid, which aspires to become “the leading sustainable energy company in the United States,” has terminated its agreement to build wind power turbines in Long Island Sound. The announcement came from the Connecticut-based company Monday evening.

The company, with $41 billion in assets and operations in 24 states, wrote:

“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.

“Since that time, Avangrid has been transparent and collaborative, working diligently with state and federal officials and stakeholders to find solutions to the economic challenges facing Park City Wind as we continued to advance the permitting and development of the project. 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.

“Pursuant to the contracts, Avangrid and the Connecticut Electric Distribution Companies have agreed to terminate the PPAs which will allow all parties an opportunity to pursue an expedient path forward.”

The CT Mirror provided a primer on the Park City project and the state of wind power development generally last spring. Read it here.

Published October 3, 2023.

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