Avangrid Announces First Onshore Wind Project in Oklahoma, Will Expand Company’s U.S. Footprint to 25 states

Rhea-AI Summary

Avangrid, Inc. (NYSE: AGR) announces its first renewable energy project in Oklahoma, the 147.5 MW Pontotoc Wind, consisting of 33 turbines, to power 40,000 homes. The project will expand Avangrid's presence to 25 U.S. states, delivering clean, renewable energy and local investment. CEO Pedro Azagra emphasizes the company's role in accelerating the clean energy transition in Oklahoma and the U.S.

Insights

Energy Sector Analyst

Avangrid's expansion into Oklahoma with the Pontotoc Wind project signifies a strategic move within the renewable energy sector. The 147.5 MW capacity is substantial, considering an average wind turbine's capacity is 2-3 MW. This development contributes to the diversification of energy sources in the U.S. and aligns with the broader industry trend towards sustainability. For stakeholders, this project not only represents an increase in Avangrid's asset portfolio but also signals potential growth in revenue streams from renewable energy credits and power purchase agreements.

Moreover, the project's ability to power 40,000 homes could alleviate grid demand and offer a buffer against volatile energy prices. It's important to note that the long-term success of this investment hinges on operational efficiency and the regulatory environment, which includes federal production tax credits and local support for wind energy development. As the energy market shifts towards renewables, Avangrid may see an improved competitive position and investor sentiment, given its proactive expansion into clean energy.

Environmental Economist

From an environmental economics perspective, the Pontotoc Wind project by Avangrid represents a positive externality, providing environmental benefits that are not fully captured in the market price of wind power. The reduction in greenhouse gas emissions from this project contributes to the societal goal of mitigating climate change. Additionally, job creation and local investment can lead to increased economic activity in Pontotoc County, which may stimulate further economic development in the region.

However, it's crucial to assess the opportunity costs and potential environmental impacts associated with the construction and operation of the wind farm. While wind energy is cleaner than fossil fuels, there are concerns related to land use and habitat disruption. The long-term environmental benefits must be weighed against these immediate impacts.

Market Research Analyst

The entry of Avangrid into the Oklahoma renewable energy market could alter competitive dynamics, potentially influencing market prices and the strategies of other energy providers. The demand for renewable energy is increasing, driven by consumer preferences and policy incentives. This project positions Avangrid favorably in meeting this demand. It's pertinent to analyze consumer trends, regulatory policies and technological advancements to forecast the project's market impact accurately.

Understanding the local energy market's supply and demand balance will be key in assessing whether the additional capacity from Pontotoc Wind could lead to an oversupply situation or if it will satisfy a growing need for renewable energy. The project's impact on energy prices will depend on these factors, as well as the operational costs relative to traditional energy sources.

147.5 Megawatt (MW) Pontotoc Wind will produce energy to power 40,000 homes

PORTLAND, Ore.--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today announced its first renewable energy project in Oklahoma. Pontotoc Wind, a 147.5 MW wind farm with 33 turbines, powering 40,000 homes, will be constructed in Pontotoc County, Oklahoma and expand Avangrid’s presence in the U.S. to 25 states.

“We are thrilled to be developing our first renewable energy project in Oklahoma, that will deliver clean, renewable, wind power to the Pontotoc County community along with jobs and local investment,” said Pedro Azagra, Avangrid CEO. “With Pontotoc Wind, we are helping to accelerate a clean energy transition in the state and across the U.S.”

Pontotoc Wind will generate about 500,000 MWh of power each year, enough energy to power more than 40,000 homes.

Construction is expected to begin in 2024 and will produce more than 200 jobs. Avangrid expects the project will contribute to the surrounding area for more than 20 years, including local jobs to support wind farm operations and other community investment. Additionally, Pontotoc Wind will contribute an estimated $25 million in property taxes over the life of the project, which benefits local schools and other services.

Avangrid worked closely with the U.S. Air Force for several years to carefully site the project in an area that protects the Air Force's mission.

With more than 8.6 GW of installed renewable capacity, Avangrid is the third-largest renewable energy operator in the U.S. Once construction is complete on this project, Avangrid will have operations or assets across half the country.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $41 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs more than 7,600 people and has been recognized by JUST Capital for three consecutive years as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2022, AVANGRID ranked second within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2022 for the fourth consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.

About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.

With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130758589/en/

Keaton Thomas

keaton.thomas@avangrid.com

503-956-9621

Source: AVANGRID, Inc.

FAQ

What is the name of the company announcing the renewable energy project in Oklahoma?

Avangrid, Inc. (NYSE: AGR)

What is the name of the renewable energy project in Oklahoma?

Pontotoc Wind

How many turbines will the Pontotoc Wind project have?

33 turbines

How many homes will the Pontotoc Wind project power?

40,000 homes

What is the ticker symbol for Avangrid, Inc.?

NYSE: AGR