Eversource Energy has agreed to sell its 50% ownership share in South Fork Wind and Revolution Wind to Global Infrastructure Partners (GIP), allowing Eversource to realize approximately $1.1 billion of cash proceeds upon closing.
The company plans to exit the 132 MW South Fork Wind project and 704 MW Revolution Wind project while retaining certain cost sharing obligations for the construction of Revolution Wind.
Last month, Eversource announced it had agreed to sell its 50% interest in the 924 MW Sunrise Wind project to Ørsted, contingent on the successful award of the NY04 NYSERDA Offshore Wind Renewable Energy Credits Agreement request for proposal and other conditions.
At or prior to closing of the sale to GIP, Ørsted and GIP intend to enter into definitive partnerships and services agreements. Eversource is expected to enter into a separate construction management agreement as a contractor to Revolution Wind to complete the onshore work currently underway. Eversource will maintain its previously announced tax equity investment in South Fork Wind.
“We continue to believe that offshore wind represents the most significant opportunity to decarbonize the electric generation footprint of New England,” says Eversource’s Joe Nolan. “Eversource will remain an integral player in this historic shift to a clean energy generation mix by focusing on our strengths as a regulated transmission builder and operator and bringing the benefits of these investments to our customers.”
In May, the company announced that it would sell its 50% interest in approximately 175,000 of developable but uncommitted offshore acres to Ørsted for $625 million. That transaction closed in September.
Eversource has engaged Goldman Sachs as its financial advisor to assist with the transactions. Ropes & Gray LLP serves as its legal counsel.
