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Danish clean energy company Ørsted A/S (CPH:ORSTED) has agreed to acquire Eversource Energy’s (NYSE:ES) 50% stake in the 924-MW Sunrise Wind offshore wind project if Sunrise Wind is successful in the ongoing New York solicitation for offshore wind capacity.
If Sunrise Wind is not awarded in the tender, the project’s existing OREC (Offshore Wind Renewable Energy Certificates) contract with the New York State Energy Research and Development Authority (NYSERDA) will be cancelled. The joint venture between Ørsted and the New England utility will be maintained and the partners will assess their next steps.
If the project is provisionally selected, a new contract will be negotiated with NYSERDA in line with the current solicitation’s updated terms.
Ørsted highlighted that Sunrise Wind is the most mature offshore wind project in New York’s pipeline and could be completed in 2026, contributing to New York’s 70% renewable energy goal by 2030.
“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,” David Hardy, Executive Vice President and CEO of Region Americas at Ørsted, said and added that this would be the company’s third offshore wind farm off the northeast coast, after South Fork and Revolution Wind, which are already under construction.
New York’s fourth competitive offshore wind solicitation was launched at the end of November 2023. The deadline for bids in this expedited tender is January 25. Sunrise Wind is being rebid after the project was previously denied contract adjustment.
Eversource recently said it would record impairment charges related to the three offshore wind projects — South Fork Wind, Revolution Wind and Sunrise Wind — it owns in partnership with Ørsted.
Ørsted booked large impairment losses on its US offshore wind portfolio in its 2023 nine-month results.
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