Increased wind generation from existing and new capacity boosted net income for US developer Avangrid’s renewables business in the first three quarters of 2018.
Net income was up 23% to $141m, compared with $115m in the same period last year, also helped by the settlement of a counterparty bankruptcy proceeding, recovery of bad debt and revenues from a disputed contract and the sale of transmission rights.
However, transmission-related issues at two new unnamed wind farms during the second quarter and expiring tax credits partially offset the benefits, the company added.
Overall, Avangrid posted net income in the first nine months of the year of $476m, a rise of 4% on the $458m reported in 2017.
Avangrid chief executive James Torgerson said: “Avangrid had solid results for the quarter mainly driven by increased gross margin at our renewables business and the implementation of rate plans at our networks businesses.
“In the Renewables business, our pipeline is strong and growing and we have been successful in contracting new PPAs. To date, we have secured over 1.8GW of wind and solar projects, nearly two-thirds of our 2022 target, of which 970MWs are currently under construction and expect to be operational in 2019.”
He added that the company expects to secure all permit and approvals next year for the 800MW Vineyard Wind offshore wind farm, which is being developed as a joint venture with Copenhagen Infrastructure Partners.