Orsted, Eversource make ‘final’ commitment to Revolution Wind project

DANISH ENERGY developer Orsted said Tuesday that it and Eversource Energy LLc have made a
DANISH ENERGY developer Orsted said Tuesday that it and Eversource Energy LLc have made a "final investment decision" on Revolution Wind, committing to the construction of the 704-megawatt offshore wind project off the coast of Rhode Island. / COURTESY ORSTED U.S. OFFSHORE WIND

PROVIDENCE – Danish energy developer Orsted A/S declared Tuesday that it and Eversource Energy LLC are committed to the 704-megawatt Revolution Wind project off the coast of Rhode Island, a “final investment decision” that came the same day 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.

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When completed, the project will deliver 400 megawatts of wind power to customers in Rhode Island and 304 megawatts to Connecticut, powering more than 350,000 homes in total. Orsted and Eversource say construction is projected to “ramp up” next year with the wind farm expected to be operational in 2025.

“Revolution Wind is key to Rhode Island and Connecticut’s clean energy future and the growth of the region’s blue economy,” said David Hardy, group CEO and executive vice president of the Americas at Orsted. “With our final investment decision, we’re solidifying our commitment to building this second offshore wind farm for Rhode Island, and the first offshore wind project for Connecticut. We’re already making major investments in local union jobs and port infrastructure to support this project, and that effort will expand in the coming months.”

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On Aug 22, the proposed Revolution Wind project received a “record of decision” from the U.S. Department of the Interior’s Bureau of Ocean Energy Management, calling the approval “a major milestone in the federal environmental review process.” The developers now have their eyes on BOEM approval for its construction and operations plan, which they anticipate the bureau will OK later this month.

“With this joint final investment decision, we are ready for the start of the full scope of construction for Revolution Wind,” said Joe Nolan, CEO president and chairman of Eversource Energy. “We’re ramping up onshore construction of the transmission system of this critical clean energy project, which will deliver enough renewable energy to power more than 350,000 homes in both Rhode Island and Connecticut. We’re proud to be part of the Revolution Wind partnership and to deliver clean renewable energy to meet the commitments for each state’s respective energy  goals.”

Orsted said Tuesday that it is canceling its Ocean Wind I and II projects off the coast of southern New Jersey, citing supply chain issues and rising interest rates.

Orsted CEO Mads Nipper said in a statement that the company was disappointed to be halting the projects because it believes the U.S. needs wind power to reduce carbon emissions.

“However, the significant adverse developments from supply chain challenges, leading to delays in the project schedule, and rising interest rates have led us to this decision,” Nipper said.

Orsted stands to lose a $100 million guarantee it posted with New Jersey earlier this month that it would build Ocean Wind I by the end of 2025. That money could be returned to ratepayers.

Orsted, the world’s largest wind energy developer, warned in August that it might walk away from one or both of its New Jersey projects, which it said needed more financial subsidies beyond a tax break approved by the state that would have let the company keep as much as $1 million in tax credits that otherwise would have had to be returned to electricity ratepayers.

The decision was the latest in a series of setbacks for the offshore wind industry in the Northeast. Two weeks ago, New York regulators rejected a request from companies for larger subsidies to complete large-scale wind, solar and offshore wind projects, saying the companies were expected to to abide by the terms of their deals with the state.

Several other offshore wind projects have been canceled. They include the Park City Wind project off the coast of Massachusetts. Avangrid, a subsidiary of Spanish utility company Iberdrola, and several Connecticut utilities scrapped a long-term power purchase agreement.

Material from The Associated Press was used in this story.

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