Eversource Secures Federal Funding for Offshore Wind Hub in Southeastern Connecticut in Collaboration with New England States

Rhea-AI Summary

Eversource Energy's Huntsbrook Offshore Wind (OSW) Hub project has been awarded $89 million in federal grant funding through the U.S. Department of Energy's Grid Innovation Program. The project is part of the Power Up New England portfolio, which received a total of $389 million in funding. The Huntsbrook OSW Hub will construct a new 345 kV switching station in Montville, Connecticut, creating a point of interconnection for future offshore wind developers to deliver 2,400 megawatts of offshore wind power.

The project is expected to create thousands of high-quality jobs and provide savings for Connecticut ratepayers. Eversource has committed $4 million to establish the Connecticut Institute for Clean Energy at UConn and $1 million for community benefits. Construction is anticipated to begin in 2028 and continue through 2031, pending necessary permits.

Positive

• Secured $89 million in federal grant funding for the Huntsbrook OSW Hub project
• Project will enable delivery of 2,400 megawatts of offshore wind power
• Expected to create thousands of high-quality jobs
• Projected savings for Connecticut ratepayers through lower wholesale electric costs
• $4 million commitment to establish the Connecticut Institute for Clean Energy at UConn
• $1 million allocated for direct community benefits

Negative

• Lengthy permitting process expected to last through 2027
• Construction not anticipated to begin until 2028

Insights

Financial Analyst

The $89 million federal grant for Eversource's Huntsbrook Offshore Wind Hub project is a significant boost for the company's clean energy initiatives. This funding, part of a larger $389 million award for the Power Up New England portfolio, demonstrates strong government support for renewable energy infrastructure. The project's potential to connect 2,400 megawatts of offshore wind power could substantially increase Eversource's clean energy capacity and potentially its revenue streams in the long term.

Investors should note the projected economic benefits, including job creation and ratepayer savings, which could enhance Eversource's reputation and market position. The $5 million commitment to community benefits and workforce development shows a strategic approach to stakeholder management. However, the lengthy permitting process (2024-2027) and construction timeline (2028-2031) mean that financial benefits may not materialize for several years, requiring patient capital.

Energy Infrastructure Expert

The Huntsbrook OSW Hub project represents a critical piece of infrastructure for the Northeast's energy transition. By creating a new point of interconnection for offshore wind, Eversource is positioning itself as a key player in the region's renewable energy future. The use of existing utility property and rights of way is a smart move, potentially expediting the project and minimizing environmental impacts.

The project's 345 kV switching station is well-suited for large-scale wind integration, addressing a major bottleneck in offshore wind development. Eversource's experience with similar projects, like South Fork Wind and Revolution Wind, provides valuable expertise. However, the complex nature of such large-scale infrastructure projects often leads to delays and cost overruns, which investors should monitor closely. The project's success could position Eversource as a leader in offshore wind infrastructure, potentially opening up new business opportunities beyond its current service areas.

Environmental Policy Analyst

This project aligns well with both federal and state-level clean energy goals, particularly Connecticut's carbon reduction targets. The DOE's substantial funding through the Grid Innovation Program indicates strong policy support for such initiatives. The Huntsbrook OSW Hub could play a important role in accelerating the integration of offshore wind into the New England grid, potentially helping to meet or exceed regional renewable energy mandates.

The establishment of the Connecticut Institute for Clean Energy at UConn, with a focus on diversity and inclusion, demonstrates Eversource's commitment to the Justice40 Initiative. This aligns with growing ESG concerns among investors and could enhance the company's sustainability profile. However, the project may face scrutiny from environmental groups concerned about impacts on marine ecosystems. Eversource will need to navigate these challenges carefully to maintain its reputation as a responsible corporate citizen and avoid potential regulatory hurdles or project delays.

Montville-based project is part of the Power Up New England portfolio recently awarded $389 million through the U.S. Department of Energy’s “Grid Innovation Program”

HARTFORD, Conn.--(BUSINESS WIRE)-- Eversource Energy is pleased to announce its Huntsbrook Offshore Wind (OSW) Hub project proposal was recently awarded $89 million in federal grant funding through the second round of the U.S. Department of Energy’s Grid Innovation Program. The Huntsbrook OSW Hub proposal was included in the Power Up New England project portfolio that was selected to receive $389 million in total funding through the DOE program and will support New England’s clean energy transition while improving grid reliability across the region.

Site of proposed Huntsbrook Offshore Wind Hub (Graphic: Business Wire)

The Huntsbrook OSW Hub project consists of constructing a new 345 kV switching station in southeastern Connecticut at Huntsbrook Junction in Montville, Connecticut, which will establish a new point of interconnection for future offshore wind developers to reliably deliver 2,400 megawatts of offshore wind via high-voltage transmission lines from the offshore wind farm to the Hub. It will utilize existing utility property and rights of way to avoid unnecessary environmental impacts and significant disruptions to local communities while providing benefits of energy cost savings and enhanced workforce development programs.

“The U.S. Department of Energy recognized the significance of the Power Up New England portfolio – including our Huntsbrook project – and awarded a transformational investment in clean energy transmission and storage infrastructure that will improve grid reliability, accelerate renewable energy integration, and reduce energy burdens across New England,” said Eversource President of Transmission and Offshore Wind Projects Bill Quinlan. “We appreciate the collaboration shown by the Massachusetts Executive Office of Energy and Environmental Affairs and our other Power Up partners and are looking forward to continuing to work closely with the Connecticut Department of Energy and Environmental Protection to advance our project, which will deliver resounding local economic and community benefits to Connecticut as we work to achieve the state’s clean energy goals and reduce carbon emissions in the coming years.”

The University of Connecticut has conducted independent analysis of the estimated economic impacts over the lifetime of the project that include the creation of thousands of high-quality jobs, including utilization of organized labor, and projected savings for Connecticut ratepayers through lower wholesale electric costs. The project has also committed $4 million to establish the Connecticut Institute for Clean Energy at UConn, which will help to expand the sustainable energy workforce in the state and region through scholarships, real-world engagement on offshore wind projects, and certificate programs relating to offshore wind, with a particular focus on engagement with individuals from underrepresented and disadvantaged backgrounds. A further $1 million will be allocated for direct community benefits to the host communities – focusing on the key principles of community and labor engagement, diversity, equity, inclusion, and accessibility (DEIA), and the Justice40 Initiative.

The Huntsbrook OSW Hub builds upon Eversource’s successful track record of building the infrastructure necessary to enable offshore wind projects to safely and reliably connect to the electric grid in the Northeast. Eversource led the transmission construction for South Fork Wind in Long Island, New York, the first operational commercial-scale offshore wind project in the nation. The company is also currently leading the transmission construction for Revolution Wind, which will provide power to Connecticut and Rhode Island, Sunrise Wind in New York, and Eversource’s Cape Cod Solution – a co-optimized, multi-phase transmission program, the first phase of which is already in service – will efficiently and cost-effectively strengthen Cape Cod’s electric grid while facilitating the integration of offshore wind energy.

Eversource expects to develop and submit requests for necessary permits for the Huntsbrook Offshore Wind Hub starting in late 2024 with review processes that could last through 2027. Pending receipt of all necessary permits per phase of work, the company anticipates construction to commence in 2028 and continue through 2031.

Eversource (NYSE: ES), celebrated as a national leader for its corporate citizenship, is among the top energy companies in Newsweek’s list of America’s Most Responsible Companies for 2024 and recognized as a Five-Year Champion, appearing in every edition of the list. Eversource transmits and delivers electricity and natural gas and supplies water to approximately 4.4 million customers in Connecticut, Massachusetts and New Hampshire. The #1 energy efficiency provider in the nation, Eversource harnesses the commitment of approximately 9,900 employees across three states to build a single, united company around the mission of safely delivering reliable energy and water with superior customer service. The company is empowering a clean energy future in the Northeast, with nationally recognized energy efficiency solutions and successful programs to integrate new clean energy resources like a first-in-the-nation networked geothermal pilot project, solar, offshore wind, electric vehicles and battery storage, into the electric system. For more information, please visit eversource.com, and follow us on X, Facebook, Instagram, and LinkedIn. For more information on our water services, visit aquarionwater.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240819925404/en/

William Hinkle

603-634-2228

william.hinkle@eversource.com

Source: Eversource Energy

FAQ

How much federal funding did Eversource receive for the Huntsbrook Offshore Wind Hub project?

Eversource received $89 million in federal grant funding for the Huntsbrook Offshore Wind Hub project through the U.S. Department of Energy's Grid Innovation Program.

What is the capacity of the Huntsbrook Offshore Wind Hub project?

The Huntsbrook Offshore Wind Hub project will enable the delivery of 2,400 megawatts of offshore wind power.

When is construction expected to begin on the Huntsbrook Offshore Wind Hub project?

Construction on the Huntsbrook Offshore Wind Hub project is anticipated to begin in 2028, pending receipt of all necessary permits.

How much has Eversource committed to the Connecticut Institute for Clean Energy at UConn?

Eversource has committed $4 million to establish the Connecticut Institute for Clean Energy at UConn.

What is Eversource's stock symbol?

Eversource's stock symbol is ES on the New York Stock Exchange (NYSE).