New York regulators on Thursday denied requests by developers of offshore wind projects and dozens of land-based renewable projects seeking billions of dollars in additional funding for existing contracts to sell power.

The state denial could force developers to cancel some money-losing contracts and cancel or delay projects to sell power in New York as it has for some offshore wind developers in Massachusetts.

The construction of offshore wind and other renewable projects is key to the plans of New York and other U.S. states to transition away from fossil fuels and reduce carbon emissions.

The developers sought to renegotiate the contracts because interest rates that have been increased to fight inflation have boosted the cost of building and financing their projects, some of which like offshore wind farms can cost billions of dollars.

(Reporting by Scott DiSavino; editing by Jonathan Oatis)