Avangrid, CIP to split Vineyard Wind LLC's offshore wind rights in US

An offshore wind turbine at sea. Image source: Iberdrola (www.iberdrola.com)

September 21 (Renewables Now) - US sustainable energy company Avangrid Inc (NYSE:AGR) and Denmark’s Copenhagen Infrastructure Partners (CIP) have agreed to restructure the ownership of some of the projects and proposals that their 50/50 offshore wind joint venture (JV) Vineyard Wind LLC is developing in the Atlantic Ocean.

The agreement was announced Tuesday by Spanish utility Iberdrola SA (BME:IBE), the majority owner of Avangrid Inc.

According to Iberdrola, Avangrid’s wholly-owned unit Avangrid Renewables LLC struck an arrangement with three of CIP’s subsidiaries for each half of the Vineyard Wind JV to take a 100% stake in two offshore wind sites on the US east coast.

The JV’s flagship project, the 800-MW Vineyard Wind 1 off Massachusetts, will remain 50/50 in the hands of Avangrid and CIP under the agreement.

However, Avangrid Renewables is to become a 100% owner of the rights over lease area OCS-A 0534, which includes the 804-MW Park City Wind project and the Commonwealth Wind project of up to 1,200-MW.

In return, CIP will fully own the rights over lease area OCS-A 0522, which has the potential to deliver around 2,500 MW of offshore wind power to New England and New York, Iberdrola said.

At deal’s close, which is subject to a number of conditions, Avangrid Renewables will make a net payment of around USD 167.5 million (EUR 142.8m) in the aggregate to CIP’s subsidiaries CI-II Park Holding LLC and CI III Park Holding LLC.

The restructuring agreement comes just days after Avangrid and CIP achieved a USD-2.3-billion financial close for the Vineyard Wind 1 project. Their JV also recently submitted a bid for the Commonwealth Wind scheme in response to the Request for Proposals (RfP) for offshore wind in Massachusetts.

The 804-MW Park City Wind proposal was selected as the winner in Connecticut’s offshore wind solicitation in late 2019.

(USD 1.0 = EUR 0.853)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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