Eversource Energy has announced that it had initiated a strategic review of its offshore wind investment portfolio.
As part of that review, expected to be completed this year, the company will explore strategic alternatives that could result in a potential sale of all or part of its 50% interest in its offshore wind joint venture with Orsted.
The JV includes three contracted projects with a total capacity of approximately 1758MW, as well as up to 70,189 hectares of offshore wind areas not allocated to a specific project.
The existing projects comprise the 130MW South Fork Wind, due to come online next year, and the 924MW Sunrise Wind, both off Long Island, and the 704MW Revolution Wind off Rhode Island.
Eversource president and chief executive officer Joe Nolan said: “In light of the record-setting prices in the recent federal lease auction for tracts around the New York Bight and an evolving landscape, we are conducting a fulsome review of our interest in the joint venture with Orsted to assess alternatives that will allow us to create shareholder value and continue building a leading clean energy company that is wholly supportive of our region’s climate change goals.
“Eversource remains committed to supporting offshore wind with advocacy, transmission investment solutions, and clean energy resource integration.
“We have seen up close why Orsted is unquestionably the world leader in engineering, building and operating offshore wind and have no doubt that the joint venture we launched five years ago will be a tremendous source of clean energy and economic development for the Northeast.”
If the recommended path forward following the strategic review is a sale of all or part of Eversource’s interest in the JV, it expects potential proceeds from such transaction would likely be used to support the utility’s regulated investments in strengthening, modernising and decarbonising its regulated energy and water delivery systems.
Nolan added: “Today, we are reaffirming our target earnings per share growth in the upper half of 5-7% through 2026 solely from our regulated businesses.
“This growth rate could be enhanced by utilizing proceeds from a sale of offshore wind assets to reduce financing needs and/or fund additional regulated investments to serve our 4.4 million customers.
“Eversource has solicited Orsted’s input on the process of our strategic review and will continue to engage with our partner as the process moves forward.”
Eversource has engaged Goldman Sachs and Ropes & Gray as advisors for this strategic review.