Home Economy Economic Activity Eversource faces up to $1.6B in impairment charges on 3 offshore wind...

Eversource faces up to $1.6B in impairment charges on 3 offshore wind projects

By

PBN Staff

-

01/10/2024

qn21SR5e-wind-1 — EVERSOURCE ENERGY LLC says it expects to record an impairment charge of up to $1.6 billion as it seeks to sell its stake in three offshore wind projects, including Revolution Wind. / COURTESY ORSTED U.S. OFFSHORE WIND

PROVIDENCE – Eversource Energy LLC said it expects to record an impairment charge of up to $1.6 billion as talks proceed to sell its stake in Revolution Wind and two other offshore wind projects. In a notice to investors on Jan. 8, Eversource said the company is in “advanced, exclusive negotiations” with a global

Already a Subscriber? Log in

To Continue Reading This Article

Become a Providence Business News subscriber and get immediate access to all of our premier content and much more.

Learn More and Become a Subscriber

Critical RI business news and analysis updated daily.
1 year of print (26 issues).
Unlimited access to all subscriber only content on our website, on any device.
Free email alerts.
Annual Book of Lists Print Edition.
All special issues produced during subscription term.

Click Here to purchase a paywall bypass link for this article

PBN Branded Content

Facing the Holidays with a Cancer Diagnosis

The holidays are often painted as a time of joy, tradition, and togetherness. But for…

Learn More

LEAVE A REPLY Cancel reply

PROVIDENCE – Eversource Energy LLC said it expects to record an impairment charge of up to $1.6 billion as talks proceed to sell its stake in Revolution Wind and two other offshore wind projects. In a notice to investors on Jan. 8, Eversource said the company is in “advanced, exclusive negotiations” with a global private infrastructure investor, to sell its 50% stake in three joint offshore wind projects with Danish utility company Orsted A/S: Sunrise Wind and South Fork Wind in New York and Revolution Wind, which is 15 miles off the coast of Rhode Island. Due to supply chain issues and uncertainties around the New York state re-bidding process, the company said it expects to take an impairment charge of $1.4 billion to $1.6 billion in the fourth quarter. “Offshore wind projects continue to experience major supply chain disruption and inflationary challenges in the early stage of this growing industry in the U.S., and this impairment is an unfortunate reflection of the current market conditions we are facing,” said Joe Nolan, Eversource’s CEO and president. “Eversource remains focused on advancing the efforts to decarbonize the energy sector and accelerate electrification with much-needed investments in transmission and other clean energy infrastructure through our regulated utilities.” Nolan said on Nov. 6 that Eversource had “substantially completed our contract negotiations with a buyer” for its share of the three wind projects and “continued to make good progress” On May 12, Nolan announced the company was “derisking the business” and that Eversource planned to sell all of its offshore interests before July 1 of this year. In 2019, Eversource paid $225 million for a 50% stake in projects led by Orsted. The joint venture included the Revolution Wind and South Fork wind farm projects, as well as a “highly coveted” 257-square-mile tract off the coasts of Massachusetts and Rhode Island. Despite Eversource Energy’s efforts to sell its stake in Revolution Wind, on Nov. 1 Orsted declared that it and Eversource were committed to the 704-megawatt project off the coast of Rhode Island, a “final investment decision” that came the same day that Orsted scrapped two large offshore wind projects off the coast of New Jersey. The decision on Revolution Wind marks the commencement of the full scope of construction of the 65-turbine wind farm about 15 nautical miles southeast of Point Judith in Narragansett, the companies said. When completed, the project will deliver 400 megawatts of wind power to customers in Rhode Island and 304 megawatts to customers in Connecticut, powering more than 350,000 homes in total. Orsted and Eversource say construction is projected to “ramp up” this year, with the wind farm expected to be operational in 2025. Eversource serves 4.4 million customers across Connecticut, Massachusetts and New Hampshire.