File photo. CapeCod.com
OAK BLUFFS – One of Avangrid’s offshore wind projects has agreed to a $48 million penalty as it terminates contracts with three electric companies.
The company attempted to negotiate contracts amid rising inflation, interest rates, and supply chain issues, but the state refused the request.
Commonwealth Wind will pay $26 million to Eversource, $22 million to National Grid, and $480,000 to Unitil, pending Department of Public Utilities approval.
The wind farm is set to be located about 20 miles off of the southern coast of Martha’s Vineyard.
Avangrid officials said that despite the cost, they intend to continue their offshore wind efforts and plan to bid again in the next round of contracts.
Avangrid is also behind the 800 Megawatt Vineyard Wind 1 project, which remains on-track for a 2024 launch.
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