Updated Bid for Sunrise Wind Wins New York’s Latest Offshore Wind Solicitation

Rhea-AI Summary

Eversource and Ørsted's Sunrise Wind project wins New York 4 solicitation, promising economic growth and job creation. Eversource to sell 50% stake to Ørsted, reducing risk exposure. Project set to be the largest US offshore wind farm by 2026.

Insights

Energy Market Analyst

The selection of the Sunrise Wind project in the New York 4 solicitation represents a significant milestone in the U.S. offshore wind industry. This project, upon completion, is poised to be the largest offshore wind farm in the country, which indicates a substantial shift towards renewable energy sources in the energy mix. The economic implications are considerable, with the creation of local union jobs and the potential to spur further economic development in the region. The transition of Eversource's 50-percent stake in the project to Ørsted will streamline the project's governance and may enhance operational efficiency. Investors should monitor the regulatory approval process and the final investment decision by Ørsted, as these are critical steps that could affect the project's timeline and financial viability.

Renewable Energy Policy Expert

The Sunrise Wind project aligns with New York State's aggressive climate goals and the broader push for clean energy transition in the U.S. The project's success in the solicitation process reflects the supportive regulatory environment and the commitment of the Hochul Administration to offshore wind as a key component of the state's energy strategy. The agreement to sell Eversource's interest to Ørsted is indicative of the strategic business decisions being made in the sector to optimize resources and expertise. As the project moves forward, it will be critical to observe how the Offshore Wind Renewable Energy Certificates (ORECs) contract with NYSERDA is finalized, as it will set a precedent for future renewable energy projects and their integration into state energy plans.

Financial Analyst

The announcement of Eversource's plans to sell its stake in the Sunrise Wind project to Ørsted is a significant financial move that could have implications for both companies' balance sheets. Eversource's statement that it no longer expects to have any risk exposure related to Sunrise Wind post-sale could be seen as a strategic financial decision to mitigate risk. Investors should consider how this sale might impact Eversource's financials, particularly in terms of capital allocation and potential returns from the sale. Additionally, the project's progress towards operational status in 2026 will likely be a factor in Ørsted's financial projections and strategic positioning in the U.S. renewable energy market.

Ready-to-build project from Eversource and Ørsted will spur economic development, create jobs and advance clean energy

With successful award in the New York 4 solicitation, Eversource to continue moving forward with agreement to sell its 50-percent interest in Sunrise Wind to Ørsted

HARTFORD, Conn. & BOSTON--(BUSINESS WIRE)-- Following the recent re-bid of the Sunrise Wind offshore wind farm by joint venture partners Eversource and Ørsted, New York has selected the project in its latest solicitation, New York 4, to deliver substantial economic benefits and advance climate goals.

The ready-to-build project would be the largest U.S. offshore wind farm upon its completion in 2026. With this successful award, Eversource will remain contracted to lead Sunrise Wind’s onshore construction even after finalizing the agreement to sell its 50-percent interest in the project to Ørsted. Upon the completion of a successful sale, Eversource no longer expects to have any risk exposure related to Sunrise Wind, including abandonment costs that were assumed in its impairment assessment. Eversource expects the sale of Sunrise Wind to Ørsted will be completed later this year, subject to customary regulatory approvals.

Sunrise Wind will now begin the next steps of finalizing agreements with New York’s energy agency, NYSERDA, on the OREC (Offshore Wind Renewable Energy Certificates) contract. The completion of Eversource’s agreement to sell its interest in the project is subject to signing of an OREC contract with NYSERDA, finalization of acquisition agreements, receipt of the federal construction and operations plan (COP), and relevant regulatory approvals.

“We’re grateful for the Hochul Administration’s support of the state’s offshore wind industry and their selection of our updated Sunrise Wind project, and we look forward to our continued role in making this exciting renewable energy project a reality,” said Eversource Chairman, President and Chief Executive Officer Joe Nolan. “Sunrise Wind is another major step forward for our shared clean energy future and will deliver significant new investments to New York State, including the creation of hundreds of local union jobs building the project’s onshore transmission system. As we continue to move toward finalizing the agreement to sell our 50-percent interest in Sunrise Wind, we’re excited to get shovels in the ground and begin the full scope of onshore construction with the important role we’ll play throughout the remainder of this project, as well as helping to enable other offshore wind projects in our region with our transmission construction expertise in the future.”

The project’s design has been reviewed and accepted by all relevant state agencies, and it has secured all major supplier and project labor agreements. Sunrise Wind is scheduled to be operational in 2026 and will begin the full scope of construction once it has received all federal permits, slated for this summer, and following a final investment decision by Ørsted that is anticipated in the second quarter of 2024.

Eversource (NYSE: ES), celebrated as a national leader for its corporate citizenship, is the #1 energy company 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/20240229080332/en/

MEDIA CONTACT:

William Hinkle

603-634-2228

william.hinkle@eversource.com

INVESTOR CONTACT :

Robert S. Becker

(860) 665-3249

robert.becker@eversource.com

Source: Eversource

FAQ

What is the latest achievement of Eversource and Ørsted's Sunrise Wind project?

The project won the New York 4 solicitation, securing substantial economic benefits and advancing climate goals.

What stake is Eversource selling to Ørsted?

Eversource is selling its 50-percent interest in the Sunrise Wind project to Ørsted.

When is the Sunrise Wind project expected to be operational?

The project is scheduled to be operational in 2026.

What recognition did Eversource recently receive?

Eversource was recognized as the #1 energy company in Newsweek's list of America's Most Responsible Companies for 2024.

How many customers does Eversource serve?

Eversource serves approximately 4.4 million customers in Connecticut, Massachusetts, and New Hampshire.