Wind

Iberdrola carves out $10bn spend for Massachusetts offshore wind build plans

Spanish utility developing US' first commercial-scale offshore wind farm earmarks two-thirds of planned spend in Atlantic play as core component of ambitious regional pipeline target

Iberdrola chairman Ignacio Galán
Iberdrola chairman Ignacio GalánFoto: Iberdrola
  • Tim Ferry

Iberdrola, renewable energy powerhouse Avangrid's parent company and partner in the US’ first utility-scale offshore wind farm, Vineyard Wind 1, has earmarked two-thirds of its planned $15bn investment in the Atlantic play to develop three high-profile projects in the state of Massachusetts.

Ignacio Sánchez Galán, chairman of Iberdrola, said the Vineyard Wind, Commonwealth and Park City projects it is developing in the federal waters off the north-east US state were key to the company’s larger ambitions in the region as well as a boost to the Biden administration's wider targets for the sector.

“Our projects in Massachusetts will be fundamental to achieving the US goal of reaching 30GW of wind energy by 2030, and with them we will generate industrial development and employment,” said Galán, speaking with Massachusetts governor Charlie Baker yesterday (Tuesday).
Iberdrola’s announced plan to earmark $10bn for Massachusetts offshore wind projects underscores its leadership in US sector, where along with the 2.8GW project pipeline it is progressing off the Bay State, it is developing the 2.5GW Kitty Hawk lease area off the coast of North Carolina.
In Massachusetts, Iberdrola is developing flagship $3.2bn Vineyard Wind 1 with Copenhagen Infrastructure Partners (CIP), but the two partners have split their joint venture for future projects. The development, being built 15 miles (21km) south of Martha’s Vineyard in federal waters, reached financial close last September and kicked off onshore construction in November, with commissioning expected in 2024.

The project is being marshalled out of the Massachusetts's New Bedford Marine Commerce Terminal, the US’ first purpose-built offshore wind port. Iberdrola and CIP will continue the partnership to develop Vineyard Wind 1, with Iberdrola retaining the rights to take full control over the project once it reaches its operational phase.

Iberdrola is also developing the 1.2GW Commonwealth Wind project awarded last December in Massachusetts’ third round tender, with plans to invest $4bn to develop the project, including construction of a submarine cable factory in the state on the site of a former coal-fired power plant.

The project is expected to create 11,000 jobs and the developer currently in negotiations with local utilities for the final power purchase agreement pricing.

Iberdrola has also taken over the $1.5bn Park City Wind development – a 804MW project that will feed into the grid of Massachusetts’ neighbour state, Connecticut – and will invest into the Port of Bridgeport.

Part of Iberdrola’s Massachusetts’ investment will also cover the development of a 1.2GW interconnection line to transport power from Canada, the utility said. Together, the projects will meet 35% of the electricity demand in Massachusetts while creating around 4,000 jobs during construction over the next few years.

On top of this, the company anticipates spending a further $30bn in transmission and renewables developments in the American market by 2025.

Iberdrola is present in 25 US states with 8GW of renewable capacity, including solar and onshore wind, and manages more than 170,000km of power lines.

The federal Bureau of Ocean Energy Management charged with managing development on the Outer Continental Shelf expects to approve 16 offshore wind construction and operations plans by 2025 on the way towards meeting the Biden administration’s national goal of 30GW of offshore wind capacity by 2030. American Clean Power Association forecasts driving $120bn in investment and economic activity.
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Published 16 February 2022, 21:13Updated 16 February 2022, 21:33
IberdrolaIgnacio Galan USMassachusettsCharlie Baker