Avangrid Inc. agreed to pay $16 million to exit contracts for a New England offshore wind farm that has become “unfinanceable” after inflation and supply-chain issues drove up costs, its second cancellation in three months.

The US entity of Spanish electricity group Iberdrola SA expects to submit bids to win new power-purchase agreements for its Park City project in state auctions set for January, according to Ken Kimmell, vice president for offshore wind development for Avangrid’s renewables unit. The payment will go to Eversource Inc. and First Energy Corp’s United Illuminating, according to a company statement.

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Avangrid to Take $16 Million Charge to Cancel Offshore Wind Deal