June 8, 2023 — MAJOR OFFSHORE wind developers in New York say their projects may no longer be financially viable unless regulators amend their power purchase agreements to include adjustments for inflation and interconnection costs.
In petitions filed with state regulators on Wednesday, the New York wind farm operators followed the same script as developers in Massachusetts, who say their projects have been overwhelmed by inflation, rising interest rates, supply chain disruption, and the war in Ukraine.
The Massachusetts developers initially sought to modify their existing power purchase agreements, but when that plea fell on deaf ears at the Department of Public Utilities they moved to terminate the agreements they signed last year and rebid the projects at higher prices in a procurement coming in 2024.
In New York, the developers are asking state regulators to agree to price adjustments in the existing contracts. They point out that New York has approved including similar price adjustments as part of the state’s third offshore wind procurement process, and now should retroactively apply them to contracts approved in the first two procurements.