The Shell-Ocean Winds joint venture (JV) behind Massachusetts’ 1.2GW SouthCoast Wind array will petition to withdraw the project due to declining economics and lack of financing.
The JV joins fellow Massachusetts developer, Iberdrola-controlled Avangrid, in seeking to rebid a project into the state’s upcoming round 4 tender. Avangrid filed a petition with the state utility regulator, Department of Public Utilities (DPU) late last year to withdraw its 1.2GW Commonwealth Wind farm.
“While SouthCoast has pursued, and is open to other solutions, and even after factoring in potential tax incentives; termination, and payment of a financial penalty for termination, has become the prudent commercial course to realise the Project due to material and unforeseen supply chain and financing cost increases affecting the whole offshore wind industry,” said Francis Slingsby, SouthCoast CEO.
