Orsted looking to buy 50 percent stake in Sunrise Wind from Eversource
Orsted is seeking to acquire Eversource’s 50 percent share of Sunrise Wind, a 924 MW offshore wind farm off the coast of New York.
Currently, the two firms have 50/50 joint ownership, so Orsted would be the sole owner of the project.
The acquisition is subject to several factors, however. First, it is contingent upon the successful award of Sunrise Wind in the ongoing New York 4 solicitation for offshore wind capacity. It also hinges on the signing of an OREC (Offshore Wind Renewable Energy Certificates) contract with New York’s energy agency, NYSERDA. Other contingencies include entry into long-form acquisition agreements, receipt of construction and operations plan (COP), and relevant regulatory approvals.
If Sunrise Wind is not successful in the solicitation, the existing OREC contract for Sunrise Wind will be cancelled and Orsted’s and Eversource’s 50/50 joint venture for Sunrise Wind will remain in place. If the project is provisionally awarded, a new contract will be negotiated with NYSERDA under the updated terms of the current solicitation.
Sunrise Wind, if awarded in the New York 4 solicitation, is expected to be completed in 2026.
“Following a thorough risk review of our US portfolio, we’re comfortable with taking full ownership of Sunrise Wind if the project is awarded in New York 4. This transaction is a value-accretive opportunity for Orsted and the best path forward for the project,” David Hardy, executive vice president and CEO of Region Americas at Orsted, said.
Sunrise Wind would be Orsted’s third offshore wind farm off the northeast coast, following South Fork and Revolution Wind, which are now under construction.
“The northeast is an increasing priority for Orsted, including these projects, port assets, a trained workforce, and supply chain partners. We’re building a future offshore wind hub that is strategic for Sunrise Wind, if awarded, as well as for upcoming solicitations in the region, helping us to differentiate and de-risk potential future bids and projects,” Hardy said.
The Sunrise Wind design has been reviewed and accepted by all relevant state agencies, and the project has secured all major supplier and project labor agreements to commence construction shortly after award. Final federal permits are expected this summer.
