Lawsuits, Roadblocks, and Terminations - Offshore Wind Update from USA

Three major offshore wind projects in the USA are facing headwinds in the form of either power purchase agreement cancellations or lawsuits.

Rhode Island Energy , the largest utility in Rhode Island, has decided that it will not be moving forward on a long-term power purchase agreement (PPA) with ?rsted and Eversource Energy for the Revolution Wind 2 offshore wind farm.

Massachusetts’s electric distribution companies Eversource Energy , National Grid , and Unitil have agreed to terminate their power purchase agreements (PPAs) for the Commonwealth Wind offshore wind farm at the request of the project developer, Iberdrola -owned Avangrid , which will pay USD 48 million in penalties for the termination that is yet to be approved by the state’s Department of Public Utilities (DPU).

?rsted has filed a complaint against Cape May County with the Superior Court of New Jersey as the developer has not yet received a permit required for investigation works at a section of a county road. The company says this is creating “a cascading and adverse effect” on the recently approved 1.1 GW Ocean Wind 1 offshore wind project and claims “the County is withholding the Permit because it opposes the Project”.

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