GIP Takes 50% Stake in Eversource Energy’s Two Offshore Wind Projects

Eversource Energy, the operator of New England’s largest energy delivery system, will sell its 50% stake in the South Fork Wind and Revolution Wind offshore projects to Global Infrastructure Partners (GIP) in a $1.1 billion deal, marking its exit from the offshore wind market.

The agreement covers Eversource’s part of the 132-megawatt South Fork Wind project and the 704-megawatt Revolution Wind project.

Eversource and GIP will bear the burden of up to $240 million in further expenditure overruns. Eversource will bear any additional costs in accordance with the existing joint venture arrangements.

“The South Fork Wind and Revolution Wind projects benefit from long-term offtake agreements and play a pivotal role in addressing the increasing demand for clean electricity,” said Bayo Ogunlesi, Global Infrastructure Partners’ Chairman and CEO.

Eversource is expected to sign a second construction management deal with Revolution Wind to complete the ongoing onshore work. Eversource will keep its previously announced tax equity investment in South Fork Wind.

Danish energy company Ørsted’s 50% ownership interests are not affected by the deal. Last May, the company announced it would sell its interest in approximately 175,000 of developable but uncommitted offshore acres to Ørsted for $625 million. That transaction closed in September.