Avangrid’s New England Wind 1 Project Selected by Massachusetts In Offshore Wind Solicitation

Rhea-AI Summary

Avangrid (NYSE: AGR) has been awarded a 791 Megawatt (MW) offshore wind project by Massachusetts in a multi-state regional solicitation. The New England Wind 1 project, located 30 miles south of Barnstable, is set to provide clean, reliable power to approximately 400,000 homes by 2029. This development will create over 4,400 full-time equivalent jobs and bring $3 billion in local investment, including new facilities in Salem and New Bedford.

The project aims to reduce greenhouse gas emissions equivalent to removing 300,000 gasoline-based cars annually. If approved, construction could begin in 2025, with full commercial operation by 2029. New England Wind 1 will complement Vineyard Wind 1, the first large-scale offshore wind project in the U.S., currently under construction nearby.

Positive

• Awarded 791 MW offshore wind project by Massachusetts
• Will power approximately 400,000 homes
• Creation of 4,400+ full-time equivalent jobs
• $3 billion local investment, including new facilities
• Greenhouse gas reduction equivalent to 300,000 cars off the road annually
• Potential construction start in 2025, full operation by 2029
• Part of Iberdrola's global offshore wind network

Negative

• None.

Insights

Financial Analyst

Avangrid's selection for the New England Wind 1 project is a significant win for the company's offshore wind portfolio. The $3 billion local investment and potential for $1.4 billion in customer savings over 20 years indicate substantial economic impact. However, investors should note that construction isn't set to begin until 2025, with full operation in 2029, meaning revenue realization is still years away. The project's 791 MW capacity will boost Avangrid's renewable portfolio, currently at 9 GW, by nearly 9%. This aligns with the growing trend towards offshore wind in the U.S. energy market, potentially positioning Avangrid for long-term growth in this sector.

Energy Policy Expert

This project marks a crucial step in Massachusetts' clean energy transition. The 791 MW capacity will significantly contribute to the state's offshore wind and climate goals. The project's ability to power 400,000 homes and reduce emissions equivalent to removing 300,000 gas-powered cars annually demonstrates its substantial environmental impact. However, the timeline to 2029 for full operation highlights the long-term nature of such infrastructure projects. Policymakers and investors should consider the potential for regulatory changes or technological advancements in the interim that could affect project economics or performance expectations.

Labor Market Analyst

The creation of 4,400 full-time equivalent jobs is a significant boost to local employment, particularly in the green energy sector. The development of a new marshalling port in Salem and a manufacturing facility in New Bedford will likely have long-term positive impacts on the local job market and economy. These facilities could potentially attract ancillary businesses and foster a skilled workforce in offshore wind technology. However, it's important to monitor how these jobs materialize over time and whether they meet projections, as large-scale projects can sometimes face delays or adjustments that affect employment figures.

New England Wind 1 to Provide 791 Megawatts of Clean, Reliable Offshore Wind Power to Massachusetts by 2029, Advancing Critical State Climate Targets

BOSTON--(BUSINESS WIRE)-- Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, today announced it has been awarded 791 Megawatts (MW) by the Commonwealth of Massachusetts in the multi-state regional offshore wind solicitation. New England Wind 1 is an offshore wind development located in federal lease area OCS-A-0534, roughly 30 miles south of Barnstable, Massachusetts and making landfall under the Craigville Beach parking lot in Barnstable.

“We are grateful to Governor Healey, Lt. Governor Driscoll, and the leadership of the entire administration in advancing energy reliability and climate goals at this historic moment,” said Avangrid CEO Pedro Azagra. “New England Wind 1 is positioned to deliver an urgent energy, climate, and economic solution to Massachusetts, and we look forward to working with the Commonwealth, Tribal Nations, organized labor, and our community partners moving forward.”

New England Wind 1 will produce enough electricity to power approximately 400,000 homes and will reduce greenhouse gas emissions equivalent to taking 300,000 gasoline-based cars off the road annually. The project will create more than 4,400 full-time equivalent jobs and bring $3 billion of local investment, including a new world class marshalling port in Salem, MA and a new offshore wind manufacturing facility in New Bedford, MA. If a power purchase agreement is signed and approved, then the project can begin construction in 2025 and reach full commercial operation in 2029.

The project will border VW1, the nation’s first large-scale offshore wind project currently under construction 15 miles south of Martha’s Vineyard. The project will generate electricity for more than 400,000 homes and businesses in the Commonwealth of Massachusetts, create 3,600 Full Time Equivalent job years, save customers $1.4 billion over the first 20 years of operation. As part of the Iberdrola group, VW1 will join the global network of offshore wind projects in France, Germany and the United Kingdom. Iberdrola currently operates approximately 2.3 GW of offshore wind capacity globally and is on-target to have nearly 5 GW installed by 2026. Earlier this week, Iberdrola secured a contract for their proposed East Anglia Two offshore wind farm project in the UK, which has a total capacity of 963 MW.

Avangrid’s renewable portfolio includes more than 75 projects spread across 22 states. It has over 9 Gigawatts of installed wind and solar capacity.

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: 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 more than 7,500 people and has been recognized by JUST Capital in 2021, 2022 and 2023 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2023, Avangrid ranked first within the utility sector for its commitment to the environment. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2023 for the fifth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit https://www.avangrid.com/

Forward-Looking Statements

Certain statements in this report may relate to our future business and financial performance and future events or developments involving us and our subsidiaries that are not purely historical and may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “should,” “would,” “could,” “can,” “expect(s),” “believe(s),” “anticipate(s),” “intend(s),” “plan(s),” “estimate(s),” “project(s),” “assume(s),” “guide(s),” “target(s),” “forecast(s),” “are (is) confident that” and “seek(s)” or the negative of such terms or other variations on such terms or comparable terminology. These forward-looking statements generally include statements regarding the award in the 202[3/4] regional offshore wind solicitation held by the Commonwealth of Massachusetts, the State of Rhode Island, and the State of Connecticut to New England Wind 1 , including any statements regarding the expected timetable for completing the offshore wind project and date of commercial operation, the permitting status of the project, the expected benefits of the project including its generation capacity, job creation, and related investment in the region, and any other statements regarding Avangrid’s future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current reasonable beliefs, expectations and assumptions and may influenced by many factors, which are often beyond Avangrid’s control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see Avangrid’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filings and the information filed on Avangrid’s Forms 8-K with the SEC as well as its subsequent SEC filings, and the risks and uncertainties related to the proposed transaction, including, but not limited to: the expected timing and likelihood of completion of the project, including the timing, receipt and terms and conditions of any regulatory approvals of the project or other third-party consents or approvals, the ability of New England Wind 1 to enter into power purchase agreements in connection with the project, or the occurrence of severe weather events. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements. Avangrid does not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Other risk factors are detailed from time to time in Avangrid’s reports filed with the SEC and we encourage you to consult such disclosures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240906211932/en/

Craig Gilvarg, Director of External Communications

craig.gilvarg@avangrid.com

(857) 998-1130

Source: AVANGRID, Inc.

FAQ

What is the capacity of Avangrid's New England Wind 1 project?

Avangrid's New England Wind 1 project has a capacity of 791 Megawatts (MW).

When is New England Wind 1 (AGR) expected to be fully operational?

If approved, New England Wind 1 is expected to reach full commercial operation in 2029.

How many homes will New England Wind 1 (AGR) power in Massachusetts?

New England Wind 1 is projected to produce enough electricity to power approximately 400,000 homes in Massachusetts.

What is the estimated local investment for Avangrid's New England Wind 1 project?

Avangrid's New England Wind 1 project is expected to bring $3 billion of local investment to Massachusetts.

How many jobs will Avangrid's New England Wind 1 (AGR) create?

The New England Wind 1 project is expected to create more than 4,400 full-time equivalent jobs.