01—Abstract
Summary
Summary of the 8-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.
Eversource Energy (ES) disclosed on February 29, 2024 that New York selected the Sunrise Wind offshore wind project, a 50-50 joint venture with Ørsted, in its New York 4 solicitation following a re-bid.
The project is described as ready-to-build and would be the largest U.S. offshore wind farm upon completion in 2026. The award matters to Eversource mainly because it supports the planned sale of its 50%a interest to Ørsted and strengthens the remaining onshore construction role. According to the release, Eversource will remain contracted to lead Sunrise Wind's onshore construction even after the sale.
Upon a successful sale, Eversource expects to have no remaining risk exposure to Sunrise Wind, including the abandonment costs that were assumed in its prior impairment assessment. The company expects the sale to close later in 2024, subject to customary regulatory approvals. Completion of the sale is conditioned on several items: signing an OREC contract with NYSERDA, finalizing acquisition agreements, receiving the federal Construction and Operations Plan (COP), and obtaining relevant regulatory approvals.
The project's design has been accepted by state agencies and it has secured major supplier and project labor agreements. Full construction is expected to begin after federal permits (anticipated this summer) and a final investment decision by Ørsted, anticipated in Q2 2024. Investors should note that the filing is a forward-looking announcement and the transaction remains contingent on these milestones.
02—Key points
Key Highlights
- New York selected the re-bid Sunrise Wind offshore wind project (Eversource and Ørsted JV) in the New York 4 solicitation.
- Sunrise Wind is described as the largest U.S. offshore wind farm upon its planned 2026 completion.
- Eversource will remain contracted to lead Sunrise Wind's onshore construction even after selling its 50% stake to Ørsted.
- Upon a successful sale, Eversource expects no remaining risk exposure to Sunrise Wind, including abandonment costs assumed in its prior impairment assessment.
- The Eversource sale of its 50% interest to Ørsted is expected to close later in 2024, subject to customary regulatory approvals.
- Closing is conditioned on signing an OREC contract with NYSERDA, finalizing acquisition agreements, receiving the federal COP, and obtaining regulatory approvals.
- Ørsted's final investment decision is anticipated in Q2 2024, with full construction to follow receipt of federal permits expected this summer.
03—Questions
Frequently Asked Questions
What did New York decide regarding Sunrise Wind?
New York selected the re-bid Sunrise Wind project, a joint venture between Eversource and Ørsted, in its latest offshore wind solicitation, New York 4. The release describes the project as ready-to-build.
Does Eversource still have a role in Sunrise Wind after the sale to Ørsted?
Yes. Eversource will remain contracted to lead Sunrise Wind's onshore construction even after it finalizes the sale of its 50% interest to Ørsted.
What risk exposure would Eversource eliminate by completing the sale?
According to the release, Eversource would no longer expect any risk exposure related to Sunrise Wind, including the abandonment costs that were assumed in its impairment assessment.
What must happen before the sale to Ørsted closes?
The sale is subject to signing an OREC contract with NYSERDA, finalizing acquisition agreements, receiving the federal Construction and Operations Plan, and obtaining relevant regulatory approvals. Eversource expects closing later in 2024.
When is Sunrise Wind expected to be operational?
The project is scheduled to be operational in 2026. Full-scope construction is expected to begin after federal permits, anticipated this summer, and a final investment decision by Ørsted, anticipated in Q2 2024.
04—Continue