Ørsted to Take Full Ownership of 924 MW Sunrise Wind Offshore Wind Farm in US

Business & Finance

January 25, 2024, by Adnan Memija

Ørsted has signed an agreement with Eversouce to acquire the company’s 50 per cent share of the 924 MW Sunrise Wind offshore wind farm, a project that would deliver power to New York.

The acquisition is subject to the successful award of Sunrise Wind in the ongoing New York fourth solicitation for offshore wind capacity, the signing of an Offshore Wind Renewable Energy Certificates (OREC) contract with the New York State Energy Research and Development Authority (NYSERDA), finalisation of acquisition agreements, receipt of construction and operations plan (COP), and relevant regulatory approvals.

On 30 November 2023, NYSERDA announced the launch of New York’s fourth competitive offshore wind solicitation as part of New York’s 10-Point Action Plan to bolster the State’s growing large-scale renewable industry.

Award announcements are expected to be made in February 2024.

If Sunrise Wind is not successful in the solicitation, the existing OREC contract for Sunrise Wind will be cancelled per the state’s requirements, and Ørsted and Eversource’s 50/50 joint venture for Sunrise Wind will remain in place and the partners will evaluate its next steps.

If the project is provisionally awarded, a new contract will be negotiated with NYSERDA under the updated terms of the current solicitation.

“This transaction is a value-accretive opportunity for Ørsted and the best path forward for the project. Sunrise Wind will be our third offshore wind farm off the Northeast coast, following South Fork and Revolution Wind, which are already under construction. The Northeast is an increasing priority for Ørsted, including these projects, port assets, a trained workforce, and supply chain partners,” said David Hardy, Group Executive Vice President and CEO of Region Americas at Ørsted.

Proposed to be built in the federal waters off Massachusetts, New York, and Rhode Island, the Sunrise Wind offshore wind farm will connect to the grid in Holbrook, New York.

Recently, the US Bureau of Ocean Energy Management (BOEM) completed its environmental review of the 924 MW project.

Initially, the project plan Ørsted and Eversource submitted for Sunrise Wind included up to 94 wind turbines that make up the project’s installed capacity of 924 MW. However, during its environmental review, BOEM developed a preferred alternative that includes 84 turbines, in response to comments from government partners, key stakeholders, and the public, and after considering project feasibility.

If awarded in the New York fourth solicitation, Sunrise Wind is expected to be completed in 2026, helping New York achieve its goal of reaching 70 per cent renewable energy by 2030.

The project’s design has been reviewed and accepted by all relevant state agencies, and Sunrise Wind has secured all major supplier and project labor agreements to commence construction shortly after the award. Final federal permits are expected this summer.