Offshore

Eversource completes sale of Sunrise Wind

Eversource completes sale of Sunrise Wind
New York's Sunrise Wind project will be the first offshore wind farm in the U.S. to be connected to the grid using a high-voltage direct current (HVDC) transmission system. (Courtesy: Siemens Energy)

Eversource Energy announced that it has completed the sale of its 50% ownership share in the 924-MW Sunrise Wind project to Ørsted.

Gross proceeds of the transaction are $230 million, subject to spending adjustments between signing and closing, with 50% due at closing and the remaining balance paid upon the achievement of certain construction milestones.

On January 24, 2024, Eversource announced that it had reached an agreement to sell its 50% interest in Sunrise Wind to Ørsted, contingent on – among other things – the project’s successful award under the fourth New York State Energy Research and Development Authority (NYSERDA) solicitation for Offshore Wind Renewable Energy Certificates. Sunrise Wind was subsequently awarded a contract by NYSERDA, which was finalized and completed on May 31, 2024.

In June 2024, the sale was approved by both the Federal Energy Regulatory Commission and the New York State Public Service Commission. In the same month, the Bureau of Ocean Energy Management (BOEM) announced its approval of Sunrise Wind’s plan for construction and operations – the project’s final approval from BOEM, following the Department of the Interior’s March 2024 Record of Decision on the project.  

With the completion of the sale, Eversource has now divested all of its ownership interests in Sunrise Wind and will have no ongoing financial obligations associated with the project costs of Sunrise Wind.

Eversource has entered into a separate amended and restated construction management agreement with Sunrise Wind to lead the onshore construction for the project. In this role, Eversource will solely be a service provider to Sunrise Wind.

“We’re proud of the role we’ve played to advance Sunrise Wind to this point and are pleased that completing the sale of our ownership share will allow it to continue its progress,” said Eversource chairman, president, and CEO Joe Nolan. “Offshore wind spurs economic development, job creation, and emissions reductions, and we look forward to conducting our onshore work to help make this important clean energy project a reality, as well as continuing to leverage our transmission expertise to help enable the continued development of this important renewable resource for our region.”

In early 2024, Eversource announced a definitive agreement to sell its 50% ownership share in South Fork Wind and Revolution Wind to Global Infrastructure Partners (GIP), following increased costs and economic uncertainty across the offshore wind industry.

Eversource had previously said during Q3 2023 it identified “certain impacts” like increased construction costs and economic uncertainty that would require further adjustment to the carrying value of its offshore wind investments for the projects. In early 2024, Eversource said it would record an after-tax impairment charge, other than temporary, between an estimated $1.4 billion and $1.6 billion in Q4 2023 as a result of its wind investments.

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