Global renewable energy giant Ørsted has taken a significant step forward in bolstering its offshore wind portfolio by signing an agreement to acquire Eversource’s 50 percent share of the 924 MW Sunrise Wind farm. The project, slated to power New York, hinges on the successful outcome of the ongoing New York 4 solicitation for offshore wind capacity.
The acquisition is contingent on several milestones, including the award of Sunrise Wind in the solicitation, the signing of an Offshore Wind Renewable Energy Certificates (OREC) contract with New York’s energy agency, NYSERDA, finalization of acquisition agreements, receipt of the construction and operations plan (COP), and relevant regulatory approvals.
Should Sunrise Wind not secure success in the solicitation, the existing OREC contract will be annulled, adhering to the state’s requirements. However, Ørsted and Eversource’s 50/50 joint venture for Sunrise Wind will persist, prompting a thorough evaluation of future steps by the joint venture.
Being the most advanced offshore wind project in New York’s pipeline, Sunrise Wind, if awarded in the New York 4 solicitation, is anticipated to be completed by 2026. This aligns with New York’s ambitious target of achieving 70 percent renewable energy by 2030.
The project’s design has received unanimous approval from all relevant state agencies, and major supplier and project labor agreements have been secured, positioning the project for construction immediately after the award. Final federal permits are anticipated to be granted in the upcoming summer.
David Hardy, Group Executive Vice President and CEO of Region Americas at Ørsted, expressed confidence in the project’s potential success, stating, “This transaction is a value-accretive opportunity for Ørsted and the best path forward for the project.”
If awarded, Sunrise Wind will mark Ørsted’s third offshore wind farm off the Northeast coast, showcasing the company’s commitment to the region. Hardy emphasized Ørsted’s strategic approach, positioning the Northeast as a priority, with ongoing projects, port assets, a trained workforce, and supply chain partnerships forming the foundation for a future offshore wind hub.
Joe Nolan, Chief Executive Officer and President of Eversource Energy, echoed the sentiment, expressing pride in the work accomplished for Sunrise Wind and anticipation for continued leadership in onshore interconnection systems for offshore wind projects in the Northeast.
Source:Ørsted
