Eversource, the largest energy provider in New England, initiated a review Wednesday of its offshore wind ventures which have been touted by the Biden administration.
The company’s “strategic review” will examine its 50% stake in a multi-project joint offshore venture with a global renewable energy powerhouse Ørsted.
Eversource — which serves about four million customers in Massachusetts, Connecticut, and New Hampshire — confirmed to investors Thursday. [bold, links added]
The multi-billion-dollar venture with Ørsted includes three offshore wind projects: the South Fork Wind and Sunrise Wind projects in New York and the Revolution Wind in Rhode Island.
“We are conducting a fulsome review of our interest in the joint venture with Ørsted to assess alternatives that will allow us to create shareholder value and continue building a leading clean energy company that is wholly supportive of our region’s climate change goals,” Eversource President and CEO Joe Nolan said in a statement Wednesday.
He added that the company would continue to support offshore wind development through “advocacy, transmission investment solutions, and clean energy resource integration.”
Nolan said the energy utility’s review of its wind investments would conclude by the end of 2022, during an earnings call Thursday.
The review could lead to the sale of all or part of the company’s stake in the Ørsted venture and the proceeds of such a transaction would be invested in the company’s existing energy and water delivery systems, according to Eversource.
The company is confident it will receive large offers to scoop up its stake given its lease value, Nolan added.
The green energy industry has been rocked by surging commodity prices over the last several months, leading to rapidly declining profits for wind and solar manufacturers.
The average price for green tech has increased 28.5% between 2021-2022 while the number of wind and solar project completions has plummeted 73% between 2019-2021.
Eversource and Ørsted celebrated the groundbreaking of the South Fork Wind project (pictured above) in East Hampton, New York, with Interior Secretary Deb Haaland and Democratic New York Gov. Kathy Hochul on Feb. 11.
Both Haaland and Hochul touted the project as the future of renewable power generation in the U.S. …snip…
The venture’s expected capacity would be enough to power about 288,000 homes, according to one industry estimate. However, offshore wind only produces between 41-50% of its total capacity on an annual basis.
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Of shore Wind Turbines are a hazard to the Sea and Shorebirds their eyesore and a waste of money trying to prevent a totaly fake crisis more people living on the coast need to oppose them
Looks like a smart move by Eversource. A few years down the road, their rate payers will be thankful. Offshore wind produces at 41-50% of capacity? I think that is probably being VERY generous most days. Offshore wind is an expensive, inefficient boondoggle. I rarely “label” but one word…ALBATROS!