Avangrid Renewables and Copenhagen Infrastructure Partners (CIP) announce the restructuring of their joint venture Vineyard Wind.
This will enable both companies to leverage their strengths and expertise to further develop the US offshore wind industry.
New distribution of project management
The Vineyard Wind joint venture, a pioneer in offshore wind power in the USA, has successfully built up a portfolio that includes Vineyard Wind 1, the first commercial-scale offshore wind project in US waters.
Vineyard Wind 1 will continue to be developed as a 50/50 joint venture between the partners.
Avangrid Renewables will then have the option of taking over operational control once the project reaches commercial operation in 2023.
Also, following the restructuring, Avangrid Renewables will become full owner of the OCS-A 0534 lease area for $167.5 million, which includes Park City Wind, an 804 MW project that will provide clean energy to Connecticut, and Commonwealth Wind, which bid for up to 1200 MW in the third Massachusetts offshore wind competitive solicitation.
CIP reclaims the strongest wind zone on the U.S. northeast coast
CIP, for its part, will take full ownership of the OCS-A 0522 lease area, the easternmost offshore wind zone, which has the potential to supply over 2,500 MW of clean energy to New England and New York.
The transaction is subject to consents from key stakeholders and regulators, including the Bureau of Ocean Energy Management (BOEM) and Connecticut’s electric utilities.
The transaction is expected to close in approximately six months, during which time the parties will have agreed on a transition plan.
