Orsted pays $152m to become full owner of 924MW Sunrise offshore wind farm in US
Closing amount paid to former JV partner Eversource Energy is down from $230m announced in January
Orsted has completed acquisition of regional utility Eversource Energy’s 50% share of the contracted 924MW Sunrise Wind offshore project for $152m, down from $230m transaction value when announced in January, according to the Danish developer, a leader in the US market.
It recently signed an offshore wind renewable energy certificates (ORECs) contract at $146/MWh for 25 years with New York State Energy Research and Development Authority (Nyserda), which oversees the state’s energy transition.
The final investment decision was taken in March for the project located off the coast of Massachusetts. Orsted plans to have the array in commercial operation in 2026.
“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,” said David Hardy, CEO of the Americas Region, at Orsted.
“As a centerpiece 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,” he added.
Sunrise was initially contracted by Nyserda in 2019 at a levelised price of $83.3/MWh in 2018 dollars, terms that the former joint venture said were no longer economically viable in the post-Covid economy.
Eversource in February also announced it would sell its 50% ownership interest in the completed 132MW South Fork and 704MW Revolution Wind projects to Global Infrastructure Partners. Orsted owns the other 50%.