New York will not modify sales contracts for offshore wind and other renewable energy

New York regulators on Thursday denied applications from developers of offshore wind projects and dozens of renewable energy land companies seeking billions of dollars in additional financing for existing power sales contracts.

The state’s denial could force developers to cancel some loss-making contracts and cancel or delay energy sales projects in New York, as has happened with some offshore wind energy developers in Massachusetts.

Building offshore wind and other renewable energy projects is key to plans by New York and other states across the country to transition away from fossil fuels and reduce carbon emissions.

Developers attempted to renegotiate contracts because interest rates that have increased to fight inflation have driven up the cost of construction and financing their projects, some of which, such as offshore wind farms, can cost billions of dollars. . (Reporting by Scott DiSavino; editing in Spanish by Aida Peláez-Fernández)