Eversource exits offshore wind; GIP acquires stake in two Northeastern projects
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Eversource Energy on Monday announced the completed sale of its 50% interest in South Fork Wind and Revolution Wind to Global Infrastructure Partners’ Skyborn Renewables, making GIP and Ørsted joint venture partners in the two projects.
In a release about the sale, Eversource said the company now expects to record a net loss of $520 million for the third quarter. Eversource had expected to sell the interests for around $1.12 billion, but sold them for $745 million.
“Eversource expects to recognize a liability of approximately $360 million, which is included as part of the aggregate net loss of $520 million on the sale, in the third quarter of 2024,” the company said. “The majority of this liability is expected to be settled in 2026.”
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“Ørsted’s leadership and innovation in the renewable energy sector makes them an ideal partner, and we are proud to build upon our successful track record together,” Salim Samaha, partner and global head of energy at GIP, said in a release.
“This fourth strategic collaboration underscores our shared commitment to advancing the energy transition and delivering sustainable solutions at scale,” Samaha said.
In March, the 130-MW South Fork Wind project became the first utility-scale offshore wind farm in the U.S. to complete construction. The 704-MW Revolution Wind is expected to be fully operational and delivering power to Rhode Island and Connecticut by 2026.
“Proceeds related to this sale may be further adjusted due to final construction costs and updated project economics as of the commercial operation date of Revolution Wind,” Eversource said in a release. “South Fork Wind has achieved commercial operations and, as a result, Eversource does not expect a material financial impact related to this project.”
Eversource said that with the sale, it has divested all ownership interests in the offshore wind business. The company sold its 50% stake in an uncommitted lease area offshore Massachusetts to Ørsted for $625 million in 2023.
“We have reached an important milestone today in our commitment as a pure-play regulated pipes and wires utility that delivers superior service and value to our customers,” said Eversource Chairman, President and CEO Joe Nolan. He added that the company is “proud of the role we have played to advance offshore wind projects” and would continue “employing our transmission expertise to conduct onshore work that supports the clean energy transition.”
Ørsted’s release said that though Eversource has exited its offshore wind investments, “the company remains a contractor on the ongoing onshore construction scope for Revolution Wind” as well a tax equity investor in South Fork Wind.
Revolution Wind and South Fork Wind are the only U.S. projects in Skyborn Renewables’ portfolio, while Ørsted is also developing Skipjack Wind, Ocean Wind 1 and 2, Sunrise Wind, and Block Island Wind Farm.
Eversource said that multiple factors could cause its total net proceeds from the sales to be higher or lower once Revolution Wind begins commercial operations: the project’s eligibility for federal tax credits “other than the anticipated 40% level”; the ultimate cost of construction; potential future delays; and a lower-than-anticipated cost of operation.