Avangrid Renewables, subsidiary of Avangrid Inc. (a company of the Iberdrola Group), and Vineyard Wind have announced today a strategic partnership to develop a large-scale offshore wind power project. Vineyard Wind will be built off the coast of Massachusetts in the USA. Avangrid Renewables has acquired 50% of Vineyard Wind, the project’s promoter, from Copenhagen Infrastructure Partners (CIP).
Work on the Vineyard wind farm will start in 2020. Its final capacity will be decided on the basis of technical studies and local characteristics. This is a major strategic cooperation agreement. The knowledge about renewable energy in the USA held by Avangrid Renewables, combined with the experience in infrastructure funding of Copenhagen Infrastructure Partners and Iberdrola’s expertise in offshore wind power projects, makes up for a major competitive advantage. And this will allow Vineyard Wind to build the first offshore wind farm project in Massachusetts (and the USA).
In the summer of 2016, new regulations entered into force in Massachusetts which stipulate that power companies acquire the production of up to 1,600 megawatts (MW) from offshore wind farm facilities within 10 years. As a result, competition amongst promoters of technology is now fierce. As of this date, only three companies have acquired rights to build in the state’s maritime zone, including Vineyard Wind. Its concession is 15 miles south of Martha’s Vineyard island.
Iberdrola already holds a portfolio of major projects in this sector in Europe: the United Kingdom, Germany and France. Also, Avangrid Renewables (Iberdrola’s subsidiary) bought the rights to develop a project in the Kitty Hawk area, off the coast of North Carolina, during an auction in mid-March. Copenhagen Infrastructure Partners provides finance and management services for ongoing offshore wind farm projects in Germany and Scotland, including the Veja Mate project (402 MW) in German waters and project Beatrice (588 MW) near the coast of Scotland. The Danish company handles more than 4 billion euros in assets and acquired Vineyard Wind in August 2016.Now, experts from both companies will join the development team based in New Bedford, Massachusetts.