Eversource completes sale of Sunrise Wind to Orsted

Published on July 11, 2024 by Dave Kovaleski

© Orsted

Eversource Energy completed the sale of its 50 percent ownership share in the Sunrise Wind project to Orsted.

Eversource got $230 million in gross proceeds from the transaction, with 50 percent due at closing and the remaining balance paid upon the achievement of certain construction milestones.

The deal was first announced back on Jan. 24, when Eversource reached an agreement to sell its 50 percent interest in the 924-megawatt Sunrise Wind project, located off the coast of New York, to Orsted. In June 2024, the sale was approved by both the Federal Energy Regulatory Commission and the New York State Public Service Commission.

With the closing of the transaction, Orsted has assumed full ownership of the project. It has all federal permits in place and recently signed an OREC (offshore wind renewable energy certificates) contract with the New York State Energy Research and Development Authority (NYSERDA) at $146 per MWh for 25 years.

“Sunrise Wind has been significantly de-risked and achieved important milestones since we agreed with Eversource to buy their share. The transaction is a value-accretive opportunity for Orsted as we continue to develop the project,” David Hardy, Executive Vice President and CEO of Region Americas at Ørsted, said. “As a centrepiece of New York’s clean energy economy, Sunrise Wind builds on our momentum from South Fork Wind, further expanding the local offshore wind supply chain and workforce. We thank Eversource for their years of partnership and ongoing support.”

Eversource has now divested all of its ownership interests in Sunrise Wind and will have no ongoing financial obligations associated with the project. However, it entered into a separate amended and restated construction management agreement with Sunrise Wind to lead the onshore construction for the project. Eversource will be the sole 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,” Eversource Chairman, President and CEO Joe Nolan said. “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.”

Eversource Energy serves approximately 4.4 million electric, natural gas and water utility customers in Connecticut, Massachusetts, and New Hampshire.