Eversource Energy, a prominent New England utility, is on the verge of finalizing an agreement to divest its 50% stake in a substantial 1.8-Gigawatt (GW) portfolio of contracted US offshore wind projects. These projects are currently held in a joint venture with Denmark's Ørsted A/S.
In a recent update provided during Eversource's third-quarter earnings call, CEO Joseph Nolan disclosed that the utility had made significant progress in contract negotiations with an undisclosed buyer. While the identity of the buyer remains confidential, Nolan did mention that the entity is closely associated with Ørsted, with whom they have engaged in previous transactions. The remaining steps involve the buyer's finalization of various documents related to the new joint venture deal with Ørsted.
This development comes more than a year after Eversource initiated a strategic review of its offshore wind investment portfolio. The primary objective of this review was to explore strategic alternatives for the business, including the possibility of a full or partial sale of its 50% stake in the joint venture with Ørsted.
Eversource had previously sold its share of an uncontracted federal offshore wind lease area in the US Northeast to Ørsted in September. Subsequently, the company stated that divesting its interest in the already contracted projects held by the joint venture would be in the best long-term interest of the company.
See also: Orsted and Eversource Celebrate Milestones at Rhode Island Offshore Wind Hub
Upon the successful completion of this divestment, Eversource will exit its joint venture with Ørsted, which was established six years ago. The joint venture currently possesses three contracted projects: the 132-Megawatt South Fork Wind and the 920-Megawatt Sunrise Wind, both situated off the coast of New York, and the 704-Megawatt Revolution Wind, located between Connecticut and Rhode Island. A final investment decision for the Revolution Wind project was made at the beginning of November, signaling significant progress in the offshore wind sector.
