Potential buyers interested in Eversource’s US offshore wind pipeline – CEO

A number of potential buyers have expressed their interest in buying Eversource’s US offshore wind holdings, according to the utility’s CEO.

Eversource’s strategic review of a possible sale of its $1.8 billion 50% ownership stake in major US offshore wind projects is still underway. The review should be finished by year-end, says a spokesman for the US utility.

In a recent earnings call with analysts, Eversource CEO Joe Nolan said that a number of potential buyers have expressed their interest. Eversource may fully or partially exit its 50:50 partnership with Ørsted in South Fork Wind, Sunrise Wind and Revolution Wind. The co-owners have also secured a 700km2 lease off Massachusetts for additional offshore wind development.

The utility started the review in May, citing the record-setting prices in the recent federal lease auction for tracts around the New York Bight and an “evolving landscape”. Cost hikes and inflation have pummelled US wind developers. 

In the earnings call, Eversource executives said that increasing interest rates and cost inflation will not “materially affect” the three offshore wind projects because more than 80% of the costs are locked in, and borrowing costs have been capitalised, reported New England media.

Nolan had previously said that Eversource may sell to one buyer for the three projects and another for the open acreage.

He added: “Contingent on the outcome of our review, I expect that our principal role in the future will be that of a regulated transmission provider integrating this valuable [offshore wind] resource into our region's grid rather than a turbine owner."

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