Orsted, a global leader in renewable energy, has inked an agreement with Eversource to acquire the entire 50 percent share of Sunrise Wind, a 924 MW offshore wind farm designated to supply power to New York.
Financial details were not disclosed.
The acquisition is contingent upon the award of Sunrise Wind in the ongoing New York 4 solicitation for offshore wind capacity. Additional prerequisites include the signing of an OREC (Offshore Wind Renewable Energy Certificates) contract with New York’s energy agency, NYSERDA, entry into long-form acquisition agreements, receipt of construction and operations plan (COP), and securing relevant regulatory approvals.
In the event that Sunrise Wind is not successful in the solicitation, the existing OREC contract for the project will be annulled as per state requirements. In such a scenario, the 50/50 joint venture between Orsted and Eversource for Sunrise Wind will persist, and the joint venture will assess its future course of action. If the project is provisionally awarded, a new contract will be negotiated with NYSERDA based on the updated terms of the ongoing solicitation.
Sunrise Wind, as the most advanced offshore wind project in New York’s development pipeline, is poised to contribute significantly to the state’s renewable energy goals, aiming to achieve 70 percent renewable energy by 2030, if awarded in the New York 4 solicitation. The project is anticipated to be completed by 2026.
Sunrise Wind has secured major supplier and project labor agreements, paving the way for construction to commence shortly after receiving the award. Final federal permits are expected to be obtained in the upcoming summer.
“Following a thorough risk review of our US portfolio, we’re comfortable with taking full ownership of Sunrise Wind if the project is awarded in New York 4. This transaction is a value-accretive opportunity for Orsted and the best path forward for the project,” David Hardy, Executive Vice President and CEO of Region Americas at Orsted, said.
Orsted said the northeast is a priority region for offshore wind projects. Orsted’s ongoing initiatives such as South Fork and Revolution Wind are currently under construction. The company aims to establish a strategic offshore wind hub in the region, leveraging existing projects, port assets, a trained workforce, and supply chain partnerships to differentiate and de-risk potential future bids and projects.