Iberdrola has formally concluded an agreement to take control of over 2,000 megawatts (MW) of US offshore wind capacity, consolidating its position as one of the largest developers of offshore wind in the country.
The restructuring of a joint venture agreement with Copenhagen Infrastructure Partners (CIP) means Iberdrola’s Avangrid Renewables takes full ownership of Commonwealth Wind, which was selected in December as part of Massachusetts’ third offshore wind competitive procurement process. The 1,232-megawatt (MW) project, New England’s largest offshore wind project to date, will create 11,000 full time equivalent jobs over the project’s lifetime and generate enough energy to power 750,000 homes annually.
The company also has sole ownership of Park City Wind, an advanced 804 MW project in Connecticut with a PPA secured and BOEM permitting underway.
Additionally, Iberdrola also retains 50% of the 800 MW Vineyard Wind 1 project in Massachusetts, and the right to take control of the project during the operational phase. This will be the first commercial scale offshore wind farm operating in the US, following the start of construction in Q4 2021.
In total, Iberdrola’s investment in its US offshore pipeline could exceed $15 billion in the coming years.
IBERDROLA SPEARHEADING CLEAN GROWTH IN THE US
Iberdrola has grown considerably in two decades operating in the US. The company’s subsidiary AVANGRID listed on the New York Stock Exchange six years ago, and it is now present in 25 states. Major investments in onshore renewables have built an operating capacity of more than 8,000 MW. The company manages more than 170,000 kilometres of power lines via eight utilities in New York, Connecticut, Maine and Massachusetts, serving a population of 7 million people, with 3.3 million direct customers.
As well as being one of the three largest wind and solar energy companies in the US, Iberdrola is now a leader in offshore wind, with a pipeline of 4,900 MW. It plans to invest more than $30 billion between 2020 and 2025 in transmission and distribution networks, and renewables, which will enable it to almost double its renewable capacity by 2025. These investments are aimed at increasing its presence in the offshore wind and solar sectors, as well as strengthening its leadership in onshore wind.
Through its subsidiary Avangrid, it also owns the Kitty Hawk development area (2,500 MW) in North Carolina, has already started the BOEM permitting process for the Kitty Hawk North project (800 MW), the first project to be developed in this area, and manages other wind farms at an earlier stage of development.