Avangrid Renewables Expands Offshore Wind Portfolio with Provisional Winning Bid in New England
AVANGRID subsidiary is co-owner of Vineyard Wind, which has won one of three U.S. Government lease sales
PORTLAND, Ore.: Avangrid Renewables, LLC, a subsidiary of AVANGRID, Inc. (NYSE:AGR), expanded their offshore wind presence as a result of winning an auction for a competitive lease sale in federal waters administered by the U.S. Department of Interior’s Bureau of Ocean Energy Management (BOEM). Vineyard Wind of New Bedford, Massachusetts, which is a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners (CIP), won one of three lease sales and secured development rights to offshore lease OCS-A 0522, a 132,370-acre area.
“Winning this lease from BOEM is an exciting step, as it demonstrates our commitment to this important and growing industry, and enables Vineyard Wind to expand the local and regional partnerships as we move forward developing the first large U.S. wind farm offshore Massachusetts next year,” said Avangrid Renewables CEO and President Laura Beane. “We are grateful to BOEM for thoughtfully working with many stakeholders in identifying this lease area as an appropriate location to generate clean energy.”
Vineyard Wind’s provisional winning bid for its lease area was $135.1 million. While the joint venture between Avangrid Renewables and CIP is currently a 50/50 partnership, Avangrid Renewables is funding 74% of this bid fee. Final execution of the lease is subject to various conditions, including BOEM review, obtaining certain regulatory approvals, and satisfactory negotiation of the lease agreement.
The three lease areas auctioned are located 19.8 nautical miles from Martha’s Vineyard, 16.7 nautical miles from Nantucket, and 44.5 nautical miles from Block Island. A map of the lease areas can be found here. Vineyard Wind’s lease area is anticipated to support approximately 2 gigawatts of commercial wind generation, enough electricity to power roughly one million Massachusetts homes.
Vineyard Wind continues to advance through the permitting process for its initial 800-megawatt offshore wind project in federal waters 14 miles south of Martha’s Vineyard, with the start of construction expected in 2019 and operations beginning in 2021. Avangrid Renewables also secured an offshore lease OCS-A 0508 in 2017 with BOEM for the 122,000-acre Kitty Hawk wind area that represents 2.4 gigawatts of potential wind capacity, which could begin operations as soon as 2025.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading, sustainable energy company with $32 billion in assets and operations in 24 U.S. states. AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns eight electric and natural gas utilities, serving 3.2 million customers in New York and New England. Avangrid Renewables owns and operates 7.1 gigawatts of electricity capacity, primarily through wind power, with a presence in 22 states across the United States. AVANGRID employs approximately 6,500 people. AVANGRID supports the U.N.’s Sustainable Development Goals, received a Climate Development Project climate score of “A-,” the top score received in the utilities sector, and has been recognized for two consecutive years by Ethical Boardroom as the North American utility with the “best corporate governance practices.” For more information, visit www.avangrid.com.
About Avangrid Renewables: Avangrid Renewables, LLC is a subsidiary of AVANGRID, Inc. and part of the IBERDROLA Group. It is a leading renewable energy company in the United States, owning and operating a portfolio of renewable energy generation facilities primarily using wind power. IBERDROLA, S.A., is an energy pioneer with one of the largest renewable asset bases of any company in the world. Avangrid Renewables is headquartered in Portland, Oregon. For more information, visit www.avangridrenewables.com.
