HYANNIS – Avangrid Renewables and Copenhagen Infrastructure Partners recently announced a strategic restructure of their Vineyard Wind joint venture.
They believe the move will allow both companies to better proceed in moving forward with the project and others like it.
The first offshore wind project in U.S. waters, Vineyard Wind 1, is an 800-megawatt (MW) offshore wind development aiming to deliver clean energy in Massachusetts in 2023.
Construction on the project is expected to begin this month.
Avangrid Renewables, a subsidiary of Avangrid Inc., owns and operates numerous renewable energy facilities in the U.S.
Copenhagen Infrastructure Partners is an international fund management company headquartered in Denmark with a focus on energy infrastructure such as offshore wind.
Vineyard 1 will remain a 50/50 joint venture between the partners, with Avangrid Renewables having an option to gain operational control once the project reaches commercial operation.
Avangrid Renewables will take ownership of lease area OCS-A 0534 which includes Park City Wind, and 804 MW project which will deliver clean energy to Connecticut, as well as Commonwealth Wind, which recently submitted as high as 1,200 MW to the third Massachusetts offshore wind competitive solicitation.
Copenhagen infrastructure Partners will take full ownership of lease area OCS-A 0522, an offshore wind area which may be able to deliver over 2,500 MW of clean energy into New England and New York.
Avangrid will make a net payment of $167.5 million in order to acquire 100% of OCS-A 534 containing Park City Wind and Commonwealth Wind. Copenhagen Infrastructure Partners will attain OCS-A 522.
The transaction is subject to approval from regulators and stakeholders, including the Bureau of Ocean Energy Management and electric distribution companies of Connecticut.
“Along with Avangrid Renewables, we have during the previous week achieved the most important milestone for offshore wind in the U.S., and with our partner are excited to lead Vineyard Wind 1 through the construction phase and complete this trailblazing project,” said Christian T. Skakkebæk, Senior Partner in CIP.
“We are proud of the extraordinary accomplishments achieved in partnership with CIP, including the first commercial-scale offshore wind farm in the United States,” said Dennis V. Arriola, CEO of Avangrid.
“We look forward to continuing our partnership with CIP for Vineyard Wind 1 as well as leading Park City Wind and Commonwealth Wind to deliver economic opportunity and clean energy to New England,” he added. “This restructuring is aligned with our long-term growth strategy and our aspiration to be the leading sustainable energy company in the U.S.”
The transaction is expected to close in about six months.
By, Matthew Tomlinson, CapeCod.com NewsCenter
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