01—Abstract
Summary
Summary of the 8-K filed January 24, 2024. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (ES) disclosed on January 24, 2024 that Ørsted has signed an agreement to acquire Eversource's 50%a stake in Sunrise Wind, a 924 MW offshore wind project that would deliver power to New York.
The deal is conditional: Sunrise Wind must win an award in the ongoing New York 4 offshore wind solicitation, the parties must sign an OREC contract with NYSERDA, finalize acquisition agreements, receive the construction and operations plan (COP), and obtain relevant regulatory approvals. The filing contains no financial results, purchase price, or accounting impact, so investors cannot yet assess the financial effect of the sale. If Sunrise Wind is not awarded, the existing OREC contract will be cancelled under state requirements, and the 50/50 joint venture with Ørsted will continue, with the partners evaluating next steps.
If the project is provisionally awarded, a new contract would be negotiated with NYSERDA under the solicitation's updated terms. Management expects completion in 2026 if awarded, and states that the design has been accepted by state agencies, major supplier and project labor agreements are in place, and final federal permits are expected in the summer of 2024.
For Eversource, the key takeaway is an exit from a jointly owned offshore wind asset that is contingent on a competitive award outcome. Investors should weigh the potential for capital recovery and reduced offshore wind exposure against the risk that the transaction does not close, and should watch for the New York 4 award results, the signed OREC contract, and any disclosed deal terms.
02—Key points
Key Highlights
- Ørsted has agreed to acquire Eversource's 50% share of Sunrise Wind, a 924 MW offshore wind farm delivering power to New York.
- The transaction is contingent on Sunrise Wind winning an award in the New York 4 offshore wind solicitation and signing an OREC contract with NYSERDA.
- Other closing conditions include finalizing acquisition agreements, receiving the construction and operations plan (COP), and obtaining relevant regulatory approvals.
- If not awarded, the existing OREC contract is cancelled and the 50/50 joint venture remains in place, with next steps to be evaluated.
- Sunrise Wind is expected to be completed in 2026 if awarded, and is described as the most mature offshore wind project in New York's pipeline.
- The filing discloses no purchase price, financial results, or accounting impact, so the financial effect on Eversource is not yet quantifiable.
- Eversource CEO Joe Nolan highlighted continued leadership in building onshore interconnection systems for Northeast offshore wind projects.
03—Questions
Frequently Asked Questions
What is Eversource actually selling?
Eversource is selling its 50% ownership interest in Sunrise Wind, a 924 MW offshore wind farm, to Ørsted. Ørsted would acquire full ownership of the project if the deal's conditions are met.
Is the sale guaranteed to close?
No. The sale depends on Sunrise Wind winning an award in the New York 4 offshore wind solicitation, signing an OREC contract with NYSERDA, finalizing agreements, receiving the COP, and obtaining regulatory approvals. Failure to win the award means the sale would not proceed under this structure.
What happens to Eversource if Sunrise Wind is not awarded?
The existing OREC contract would be cancelled under state requirements, and the 50/50 joint venture with Ørsted would remain in place. The partners would evaluate next steps, and if the project is provisionally awarded, a new contract would be negotiated with NYSERDA under updated terms.
What is the financial impact on Eversource?
The filing does not disclose a purchase price, proceeds, earnings effect, or balance sheet impact. Investors will need to await further disclosure, such as definitive agreements or the NYSERDA award outcome, to assess the financial effect.
What should investors monitor next?
Key milestones include the results of the New York 4 solicitation, execution of the OREC contract with NYSERDA, receipt of the COP and federal permits (expected in summer 2024), and any disclosure of deal terms or definitive acquisition agreements.
04—Continue