Orsted has signed an agreement with Eversource to acquire the US energy company’s 50% share of the 924MW Sunrise Wind offshore wind farm.
The acquisition is subject to the successful award of Sunrise Wind in the ongoing New York 4 solicitation for offshore wind capacity, signing of an Offshore Wind Renewable Energy Certificate (OREC) contract with New York’s energy agency, NYSERDA, finalisation of acquisition agreements, receipt of construction and operations plan (COP) and regulatory approvals.
If Sunrise Wind is not successful in the solicitation, the existing OREC contract for Sunrise Wind will be cancelled per the state’s requirements, and Orsted and Eversource’s 50/50 joint venture for Sunrise Wind will remain in place.
In that scenario, the joint venture will evaluate its next steps.
If the project is provisionally awarded, a new contract will be negotiated with NYSERDA under the updated terms of the current solicitation.
As the most mature offshore wind project in New York’s pipeline, Sunrise Wind is, if awarded in the New York 4 solicitation, expected to be completed in 2026.
The Sunrise Wind design has been reviewed and accepted by all relevant state agencies, and the project has secured all major supplier and project labour agreements to commence construction shortly after award. Final federal permits are expected this summer.
David Hardy, Group Executive Vice President and CEO of Region Americas at Orsted, said: “Following a thorough risk review of our US portfolio, we’re comfortable with taking full ownership of Sunrise Wind if the project is awarded in New York 4.
“This transaction is a value-accretive opportunity for Orsted and the best path forward for the project.
“Sunrise Wind will be our third offshore wind farm off the Northeast coast, following South Fork and Revolution Wind, which are already under construction.”
Joe Nolan, Chief Executive Officer and President of Eversource Energy, added: “We’re proud of the work we have already accomplished for Sunrise Wind and look forward to continuing our leadership position building onshore interconnection systems for offshore wind projects in the Northeast.”