Northeast States Join Forces to Procure Offshore Wind Power Amid Industry Challenges

Three U.S. states - Massachusetts, Rhode Island, and Connecticut - agreed to jointly procure offshore wind power. This is aimed at countering challenges facing the U.S. offshore wind industry.

The states will seek proposals for up to 6,000 megawatts of offshore wind power in 2024.

Rising interest rates and costs have made some U.S. offshore wind projects uneconomical, leading developers to cancel power purchase agreements.

Avangrid canceled agreements to sell power from its Park City offshore wind project in Connecticut due to unfinanceable costs.

SouthCoast Wind will pay Massachusetts utilities $60 million to terminate contracts for 1,200 megawatts of offshore wind power.