Avangrid Commissions 10 Vineyard Wind 1 Turbines Totaling 136 MW

Rhea-AI Summary

Avangrid (NYSE: AGR), in collaboration with Copenhagen Infrastructure Partners, has announced the commissioning of 10 turbines at the Vineyard Wind 1 project. This project, now delivering 136 MW to Massachusetts' electric grid, is the largest offshore wind project in the United States. Plans include a total of 62 turbines generating 806 MW, enough to power 400,000 homes. The project, 15 miles off Martha’s Vineyard, will save customers $1.4 billion over 20 years and cut carbon emissions by 1.6 million metric tons annually. So far, 937 union jobs have been created through its construction.

Positive

• Commissioned 10 turbines generating 136 MW to the Massachusetts electric grid.
• Largest offshore wind project in the United States, with a planned total of 62 turbines generating 806 MW.
• Projected to save customers $1.4 billion over 20 years.
• Expected to reduce carbon emissions by 1.6 million metric tons annually.
• Created 937 union jobs during construction, nearly double the initial commitment.

Negative

• None.

Insights

Renewable Energy Analyst

The activation of 10 turbines generating 136 MW positions Vineyard Wind 1 as the largest operational offshore wind farm in the U.S. This milestone underscores significant progress in the realm of renewable energy, particularly offshore wind. Offshore wind is important for the Northeast, especially during peak winter demand and contributes to reducing carbon emissions, which aligns with global decarbonization goals.

For investors, the completion of critical project phases implies potential revenue streams and enhances the company's credibility in the renewable sector. Moreover, the creation of 937 union jobs and expected cost savings of $1.4 billion over 20 years offer tangible local economic benefits. However, investors should be aware that offshore wind projects often face logistical and regulatory hurdles, which can impact timelines and costs.

The project's completion and its contribution to reducing emissions by over 1.6 million metric tons annually positions Avangrid favorably in an era where ESG (Environmental, Social, Governance) factors are increasingly significant in investment decisions.

Market Research Analyst

The integration of the Vineyard Wind 1 project is a landmark event in the U.S. renewable energy landscape. By supplying 136 MW currently and targeting 806 MW upon completion, Avangrid reinforces its market position. Offshore wind addresses regional energy needs and contributes to grid stability, which is critical given the ISO New England's findings from 2018 about cost savings and emission reductions during cold snaps.

From a market perspective, this project symbolizes a shift towards sustainable energy solutions, catering to a growing consumer base that prioritizes clean energy. It also enhances Avangrid's portfolio, potentially increasing its appeal among institutional investors focused on sustainability. However, market players should consider the competitive landscape and the potential for regulatory changes that could impact future projects.

As investors, understanding the project's strategic importance in meeting regional energy demands and its potential for long-term returns is key. The project’s successful operation could be a catalyst for similar projects, promoting further investments in renewable infrastructure.

Financial Analyst

Avangrid's commissioning of 10 turbines within the Vineyard Wind 1 project signals substantial forward momentum. The energy production capability of 136 MW will incrementally increase to 806 MW, providing a stable revenue stream. The projected savings of $1.4 billion over 20 years and job creation further solidify the project's financial robustness.

For retail investors, this translates to a potentially steady increase in stock value driven by sustainable and predictable energy production. However, costs associated with offshore construction and potential operational risks should be considered, including maintenance in marine environments which can be challenging and costly.

Overall, the project's ability to provide clean energy to 400,000 homes and significant carbon emission reductions makes it an attractive long-term investment. Still, investors should monitor progress against projected timelines and cost management strategies to ensure financial targets are met.

Avangrid places 10 turbines into production, making Vineyard Wind 1 largest operating offshore wind farm in United States

To access b-roll footage, click here.

BOSTON--(BUSINESS WIRE)--

Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, and Copenhagen Infrastructure Partners (CIP), a global leader in green energy investment and in offshore wind development through its affiliate Vineyard Offshore, today announced that the Vineyard Wind 1 project is now delivering more than 136 Megawatts (MW) to the electric grid in Massachusetts, making it the largest operating offshore wind project in the United States. The first large-scale offshore wind project in the United States, Vineyard Wind 1 now has 10 turbines in operation totaling approximately 136 MW, enough to power 64,000 homes and businesses in the Commonwealth. Vineyard Wind 1 has currently installed 47 foundations and transition pieces and 21 turbines, with installation of the 22^nd turbine underway. The project will be the largest renewable energy facility in New England once fully operational, delivering 806 Megawatts – enough clean electricity to power 400,000 homes and businesses.

A GE Haliade-X Turbine Stands in the Vineyard Wind 1 Project Area South of Martha’s Vineyard. Photo Credit: Eric Haynes

“With 10 turbines now in operation, Avangrid is delivering enough clean energy to power more than 60,000 homes and businesses in Massachusetts,” said Avangrid CEO Pedro Azagra. “Our Vineyard Wind 1 project continues to demonstrate the significant benefits that offshore wind offers the New England region, delivering well-paying union jobs, local investment, and clean energy that is helping Massachusetts meet its growing demand for electricity.”

In February 2024, Vineyard Wind delivered approximately 68 MW from five turbines to the grid. Building on the 136 Megawatts currently in operation, additional power will be delivered to the grid sequentially, with each turbine starting production once it completes the commissioning process.

The power from the project interconnects to the New England grid in Barnstable, transmitted by underground cables that connect to a substation further inland on Cape Cod. Once completed, the project will consist of 62 wind turbines.

Offshore wind is a critical energy resource in the Northeast region, and is uniquely positioned to meet the New England region’s winter peak demand. In 2018, ISO New England released an assessment, which found that 800 Megawatts of offshore wind during a two-week cold snap would have saved ratepayers $40-45 million and avoided more than 108,000 metric tons of carbon emissions, equivalent to 5% of the region’s annual emissions.

From the outset of this project, Vineyard Wind recognized the importance of building and supporting a workforce of local, highly skilled, and diverse tradespeople. The valuable collaboration with union leadership on this project is a prime example of how this new industry can be a responsive member of the communities it serves, ensuring accessible and family-sustaining careers.

Vineyard Wind began offshore construction in late 2022, achieved steel-in-the-water in June 2023, and completed the nation’s first offshore substation in July 2023. Construction flows through the New Bedford Marine Commerce Terminal. In July 2021, Vineyard Wind signed the first Project Labor Agreement for an offshore wind project in the United States, which outlined the creation of 500 union jobs though the project. In December 2023, project shareholders announced that Vineyard Wind 1 has delivered nearly double of its commitment through the PLA by creating 937 union jobs through two years of construction.

An 806-megawatt project located 15 miles off the coast of Martha’s Vineyard, Vineyard Wind will generate electricity for more than 400,000 homes and businesses in the Commonwealth of Massachusetts, create 3,600 Full Time Equivalent (FTE) job years, save customers $1.4 billion over the first 20 years of operation, and is expected to reduce carbon emissions by more than 1.6 million metric tons per year, the equivalent of taking 325,000 cars off the road annually.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $45 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 as one of the JUST 100 companies – a ranking of America’s best corporate citizens – in 2024 for the fourth consecutive year. 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/20240625367290/en/

Media Contacts:

Avangrid

Craig Gilvarg

craig.gilvarg@avangrid.com

(857) 998-1130

Source: AVANGRID, Inc.

FAQ

What is Vineyard Wind 1's current power output?

Vineyard Wind 1 is currently delivering 136 MW to the Massachusetts electric grid from 10 turbines.

How many homes can Vineyard Wind 1 power with its current turbines?

The 10 commissioned turbines can power approximately 64,000 homes and businesses.

How many turbines will Vineyard Wind 1 have when fully operational?

Vineyard Wind 1 will have a total of 62 turbines when fully operational.

What is the expected total power output of Vineyard Wind 1 once complete?

Once complete, Vineyard Wind 1 is expected to deliver 806 MW of power.

How much money is Vineyard Wind 1 expected to save customers?

Vineyard Wind 1 is projected to save customers $1.4 billion over the first 20 years of operation.

How many union jobs have been created by Vineyard Wind 1?

The Vineyard Wind 1 project has created 937 union jobs through two years of construction.

How does Vineyard Wind 1 impact carbon emissions?

Vineyard Wind 1 is expected to reduce carbon emissions by over 1.6 million metric tons per year.