AVANGRID Reaches Agreement to Operate First-in-the-Nation Vineyard Wind 1 Project
BOSTON–(BUSINESS WIRE)–AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company and part of the IBERDROLA Group, today announced that it has finalized an agreement to assume responsibility as the operations and management services provider for Vineyard Wind 1, the first commercial-scale offshore wind project in the United States. Vineyard Wind 1, an 800-megawatt offshore wind project owned in a 50-50 Joint Venture between AVANGRID and Copenhagen Infrastructure Partners (CIP) funds CI II and CI III., is currently under construction off the coast of Massachusetts.
“AVANGRID is proud to pioneer the offshore wind industry in the United States, and by leveraging the global experience of the IBERDROLA group and a skilled and talented local workforce, we are well positioned to maximize the operation and performance of the historic, nation-leading Vineyard Wind 1 project,” said Pedro Azagra, CEO of AVANGRID. “Offshore wind represents a tremendous opportunity to advance the United States’ ambitious climate goals, and the completion and successful operation of Vineyard Wind 1 will lay the groundwork for the continued growth of the industry in the decades to come, including AVANGRID’s robust 4.9 Gigawatt project pipeline.”
The agreements include the Operations and Maintenance Service Agreement and Asset Management Agreement, which designate AVANGRID as the party responsible for overseeing the operation and management of the facility once construction is complete and commercial operations begin. Through these agreements, AVANGRID will provide services to the Vineyard Wind project and be the lead for the operations management of the wind farm, including the supervision of critical tasks such as turbine, cable and substation maintenance, coordination of contractors, 24/7 control center services, trading, and assets management. AVANGRID will hire approximately 20 technically qualified employees, including key roles that will receive intensive training overseas through IBERDROLA’s operational offshore wind farms in the United Kingdom and Europe, helping to prepare them to knowledgeably operate the groundbreaking U.S. facility. Vineyard Wind 1 is scheduled to begin delivering clean energy to Massachusetts in 2023 and achieve commercial operations in 2024.
Vineyard Wind 1 will generate clean, renewable, affordable energy for over 400,000 homes and businesses across the Commonwealth, reducing carbon emissions by over 1.6 million tons per year while creating 3,600 full-time equivalent jobs and saving ratepayers $1.4 billion over the life of the project.
In January 2022, AVANGRID announced the completion of the restructuring of its existing Vineyard Wind joint venture to become the largest offshore wind supplier in New England. In total, AVANGRID has a projected offshore wind pipeline of 5 Gigawatts (GW) on the East Coast of the United States – enough to power more than two million households. In addition to its 50% stake in the first-in-the-nation Vineyard Wind 1 project (800 MW total), AVANGRID owns 100% of Commonwealth Wind (1200 MW to Massachusetts), Park City Wind (804 MW to Connecticut) and Kitty Hawk Wind (2500 MW off the coast of North Carolina).
Within IBERDROLA’s global renewables pipeline, totaling 90 GW, offshore wind has become one of the group’s central growth opportunities. Over the last year, IBERDROLA has invested in new growth platforms in other countries such as Poland, Sweden, Ireland, Japan, and Australia, which has increased the size of the group’s global offshore wind portfolio to 31.7 GW.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading sustainable energy company transitioning America toward a clean and connected future headquartered in Orange, CT, and has a footprint in 24 states with $40 billion in assets. Our primary businesses are Avangrid Networks, which serves 3.3 million electric and natural gas customers in the Northeast, and Avangrid Renewables, the third-largest renewable energy company in the U.S. with a diverse onshore and offshore renewable energy portfolio. With more than 7,000 employees, AVANGRID has built a culture that blends diversity, equity and inclusion guided by the company’s ESG+F framework and the UN Sustainable Development Goals. This has led to recognition by JUST Capital in 2021 and 2022 as one of America’s best corporate citizens and second in utilities for our commitment to the environment and the communities we serve. AVANGRID has been named one of the World’s Most Ethical Companies for three consecutive years by the Ethisphere Institute.
About Iberdrola: Iberdrola is one of the world’s biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
With a workforce of nearly 40,000 and assets in excess of €141.7 billion, the company posted revenues of €39 billion and a net profit of over €3.9 billion in 2021. Across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.
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