Iberdrola concludes restructuring of US offshore wind JV with CIP

Offshore wind farm. Photo by: Iberdrola (www.iberdrola.com).

January 11 (Renewables Now) - Iberdrola SA (BME:IBE) has obtained full ownership of a couple of US offshore wind developments surpassing 2,000 MW of total capacity by finalising the restructuring of a joint venture with Copenhagen Infrastructure Partners (CIP).

The Spanish electric utility said today it is now the sole owner of the 1,232-MW Commonwealth Wind and 804-MW Park City Wind projects in Massachusetts and Connecticut, respectively. It also keeps a 50% interest in the 800-MW Vineyard Wind 1 project and has the option to take control of it during the operational phase.

This restructuring increases the company’s US offshore wind pipeline to 4,900 MW, it noted.

Iberdrola’s US unit Avangrid Inc (NYSE:AGR) and CIP announced plans to restructure their 50/50 offshore wind JV in the US last September. Since then, Commonwealth Wind was selected as part of Massachusetts’ third offshore wind competitive procurement process.

The restructuring deal was said to involve a payment of USD 167.5 million (EUR 148m) by Avangrid Renewables to CIP subsidiaries. It was also agreed for the Danish infrastructure investor to receive full ownership of a lease area that has the potential to deliver around 2,500 MW of offshore wind power to New England and New York.

Iberdrola said it plans to invest over USD 30 billion in transmission and distribution networks, as well as renewables, in the period 2020-2025. Through Avangrid, it also owns the 2,500-MW Kitty Hawk development area in North Carolina.

(USD 1.0 = EUR 0.882)

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