PROVIDENCE – Eversource Energy LLC has found a buyer for its stake in two offshore wind projects off the coast of Rhode Island.
The company announced on Tuesday that it has executed a definitive agreement with infrastructure investment fund Global Infrastructure Partners to sell its 50% ownership share in Revolution Wind and South Fork Wind, about 15 miles east of Block Island.
Last year, Eversource announced its intention to sell its offshore wind interests as part of an effort to "derisk" the company.
Danish utility company Orsted A/S will retain its 50% stake in both projects. Eversource is expected to enter into a separate construction management agreement as a contractor to Revolution Wind to complete the onshore work underway and will maintain its previously announced tax equity investment in South Fork Wind.
Eversource expects to receive approximately $1.1 billion from U.S.-based Global Infrastructure Partners upon the closing of the transaction, which is expected in mid-2024. Eversource said it would retain some cost-sharing obligations for the construction of Revolution Wind.
"We continue to believe that offshore wind represents the most significant opportunity to decarbonize the electric generation footprint of New England," said Joe Nolan, Eversource Energy CEO and president. "Eversource will remain an integral player in this historic shift to a clean energy generation mix by focusing on our strengths as a regulated transmission builder and operator and bringing the benefits of these investments to our customers."
Tuesday's announcement was not unexpected.
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”
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.
When completed, Revolution Wind 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. 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.
