Eversource Energy Exits Offshore Wind Business, Sets Course for Core Utility Operations
In a strategic move aimed at refocusing its energy delivery efforts, Eversource Energy has completed the sale of its 50% interest in the 132-megawatt South Fork Wind and the 704-megawatt Revolution Wind projects to Global Infrastructure Partners (GIP) for adjusted gross proceeds of $745 million.
This significant milestone marks Eversource’s complete divestiture from the offshore wind sector, a move that reflects a broader trend in the utility industry where companies are reassessing their roles in capital-intensive renewable energy projects. Despite the need to record an aggregate net loss of approximately $520 million in the third quarter of 2024 as a result of this divestiture, Eversource remains committed to improving its balance sheet and enhancing its core utility operations.
In June 2022, Eversource had announced its intention to withdraw from the offshore wind business to concentrate on its core business of providing regulated energy services in Massachusetts, Connecticut, and New Hampshire. The decision was part of a broader strategy to strengthen its financial position and ensure future growth through investments in its regulated utility business.
Key Highlights of the Transaction:
– **Sale of South Fork Wind and Revolution Wind**: Eversource has divested its stakes in both the 132-megawatt South Fork Wind and the 704-megawatt Revolution Wind projects, signaling a complete exit from the offshore wind sector.
– **Aggregate Net Loss**: The company expects to incur an aggregate net loss of $520 million due to the divestiture, which includes a $370 million gain from the sale of its stake in the Sunrise Wind project to Ørsted and anticipated increases in construction costs related to Revolution Wind.
– **Regulated Business Focus**: Despite the exit from renewable energy development, Eversource remains committed to its core utility operations. The company plans to focus on improving service metrics, modernizing the energy delivery system, and supporting the clean energy transition within the region.
Eversource Chairman, President, and CEO Joe Nolan celebrated the milestone by highlighting the company’s commitment to delivering superior service and value to its customers. He emphasized that while the company is proud of its contributions to advancing offshore wind projects, it will continue to leverage its transmission expertise for onshore work supporting the development of renewable resources in the