Avangrid Announces Construction of its Fifth Wind Farm in Illinois

Rhea-AI Summary

Avangrid, Inc. (NYSE: AGR) announces the construction of Osagrove Flats, a 153 MW wind farm in La Salle County, Illinois. The project, the company's fifth wind farm in the state, aims to accelerate the clean energy transition, bringing jobs and investment to the local community.

Insights

Energy Market Analyst

The announcement of Avangrid's new wind farm, Osagrove Flats, marks a significant addition to the renewable energy landscape in Illinois. With a capacity of 153 MW, this project contributes to the growing trend of utility-scale renewable energy projects that are reshaping energy production in the United States. From an energy market perspective, the integration of such a substantial amount of wind energy is likely to influence local energy prices, potentially lowering them due to the increased supply of low marginal cost electricity.

Furthermore, the production of over 550,000 MWh annually can be contextualized by considering that the average U.S. household consumes about 10,649 kWh per year. This output could therefore power roughly 51,600 average American homes, underscoring the project's substantial impact on meeting energy needs sustainably. Investors in the energy sector may view this development favorably, as it aligns with global trends towards decarbonization and could enhance Avangrid's reputation as a leader in renewable energy.

Financial Analyst

Avangrid's expansion into Illinois with the construction of Osagrove Flats represents a strategic investment that could have positive long-term financial implications for the company. The project aligns with investor interest in Environmental, Social and Governance (ESG) criteria, which is increasingly important for attracting investment. As renewable energy assets like wind farms often benefit from government incentives and long-term power purchase agreements, they can provide stable and predictable revenue streams.

However, the capital expenditure required to build the wind farm must be scrutinized alongside potential returns. The financial health of Avangrid, including its ability to fund the project without over-leveraging, will be an important consideration for stakeholders. The impact on Avangrid's balance sheet and future earnings reports will be closely monitored by investors seeking to understand the project's return on investment and its contribution to the company's overall financial performance.

Environmental Policy Expert

The construction of Osagrove Flats by Avangrid is emblematic of the broader policy-driven shift towards renewable energy sources in the U.S. It reflects the alignment with state and federal policies that incentivize clean energy production. This project contributes to Illinois' Renewable Portfolio Standard (RPS) goals, which mandate a certain percentage of energy from renewable sources and can potentially influence other states' energy policies by serving as a model for successful renewable energy integration.

On a broader scale, the wind farm's development is consistent with international climate targets, such as those outlined in the Paris Agreement. It demonstrates how private sector investments can support public policy objectives in reducing carbon emissions. The environmental benefits, such as the reduction of greenhouse gas emissions and the conservation of natural resources, are likely to resonate with stakeholders who prioritize sustainability in their investment decisions.

The 153 Megawatt (MW) wind farm, Osagrove Flats, will be built in La Salle County and demonstrates company’s continued investment in Illinois

PORTLAND, Ore.--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today announced the construction of what will be the company’s fifth wind farm in Illinois. Osagrove Flats, located in La Salle County, will include 34 wind turbines with a total capacity of 153 MW.

“Avangrid has a long track record of successfully partnering with Illinois communities to build and operate wind farms, helping accelerate a clean energy transition in the state and across the country,” said Pedro Azagra, Avangrid CEO. “We are excited to build on our more than 15-year history in Illinois with Osagrove Flats, which will bring jobs and additional investment to the local community.”

The wind farm will produce more than 550,000 MWh of energy in a year, which is the same amount of power used by about 50,000 U.S. homes.

Construction at Osagrove Flats is expected to create about 300 jobs. Long-term operations and maintenance will also support several permanent jobs on site. The wind farm is estimated to contribute more than $40 million in property taxes over the life of the project, which directly supports public services like education and fire protection.

Avangrid has also worked closely with the surrounding community, providing direct financial support in some cases. For example, the company donated $15,000 to the Village of Dana, located near the project, which it used to maintain ambulance service in the community and renovate the town hall.

"We have developed a tremendous relationship with Avangrid over the past several years and we are thrilled to see the Osagrove Flats wind farm coming to life," said Joe Centeno, president of the Village of Dana. "They have demonstrated time and again that they care about this community, and I look forward to seeing the lasting benefits this project will bring to our village, school district, and township."

Osagrove Flats is located near four other Avangrid wind farms operating in Illinois, including Streator Cayuga Ridge South, Midland, Otter Creek, and Providence Heights. When construction is complete, it will bring Avangrid’s total installed renewable energy capacity in Illinois to nearly 800 MW.

With 8.7 GW of installed renewable capacity, Avangrid is the third largest renewable energy operator in the U.S.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $44 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240311062167/en/

Media:

Keaton Thomas

Keaton.thomas@avangrid.com

949-606-3641

Source: AVANGRID, Inc.

FAQ

What is the name of the company announcing the construction of Osagrove Flats?

Avangrid, Inc. (NYSE: AGR)

Where will the Osagrove Flats wind farm be located?

La Salle County, Illinois

How many wind turbines will be included in the Osagrove Flats wind farm?

34 wind turbines

What is the total capacity of the Osagrove Flats wind farm?

153 MW

How much energy will the wind farm produce in a year?

More than 550,000 MWh