Orsted and Eversource Collaborate for Offshore Wind Farm Project
Denmark’s Orsted announced on Thursday that it had submitted a revised proposal with Eversource for the Sunrise Wind project, following New York’s latest offshore wind solicitation. Sunrise Wind aims to establish a 924 MW offshore wind farm that will supply power to New York. Orsted expects the project to be finalized by 2026.
The updated proposal outlines an agreement wherein Orsted would acquire Eversource’s 50% stake in Sunrise Wind if awarded the contract through New York’s fourth offshore wind solicitation. If successful, Orsted would become the sole owner of the project while Eversource would oversee the onshore construction.
As part of the agreement, Orsted will pay 50% of the negotiated purchase price upon the closing of the sales transaction. The remaining 50% will be paid upon the completion of the onshore construction phase.
New York State’s Push for Renewable Energy
To revitalize struggling projects and meet its renewable energy objectives, New York State initiated an accelerated offshore wind solicitation. This move demonstrates the state’s commitment to green energy.
Orsted’s Strategic Decisions Regarding Skipjack Project
Separately, Orsted has withdrawn from the Maryland Public Service Commission orders for Skipjack 1 and 2 projects. The company cited financial challenges, including high interest rates and supply chain constraints, as reasons for the decision.
Nevertheless, Orsted plans to continue developing the combined project and will reposition Skipjack Wind, which aims to deliver a total capacity of 966 megawatts.
By making strategic adjustments and collaborating with Eversource, Orsted seeks to further expand its presence in the offshore wind industry, providing sustainable energy solutions for New York and beyond.