Offshore Wind Developers Seek Contract Changes Amid Supply Chain and Inflation Woes

SouthCoast Wind, a joint venture between Shell and Ocean Winds, is seeking to terminate its existing Power Purchase Agreements (PPAs) for the first 1.2 GW of its 2.4 GW offshore wind project off the coast of Massachusetts, citing "material and unforeseen supply chain and financing cost increases affecting the whole offshore wind industry." The company plans to rebid the PPAs into the next round in line with the path created in the recently released Massachusetts RFP. The project will continue to move through federal and state permitting and have the grid connections necessary to ensure the delivery of 2,400 MW of power.