Iberdrola is awarded the power supply contract for Commonwealth Wind
Iberdrola, through its subsidiary Avangrid, has been awarded a contract in Massachusetts to supply electricity to the future Commonwealth Wind farm, the third offshore wind tender in Massachusetts. The 1,232-megawatt project, New England's largest offshore wind project to date, will create the equivalent of 11,000 full-time jobs over the life of the project and generate enough power to supply 750,000 homes.
Ignacio Galán, Chairman of Iberdrola, said: "Commonwealth Wind will provide clean energy to hundreds of thousands of homes and businesses in Massachusetts, creating thousands of local jobs throughout the supply chain. It will also be a key project in helping the United States reach its goal of 30,000 MW of offshore wind by 2030.
He added that "having invested $15 billion in 8,000 MW of onshore wind and solar, we are already leading in offshore wind in the US with the development of Vineyard Wind One and Park City Wind. With 15 years of experience in delivering projects around the world, IBERDROLA and Avangrid are working hard to ensure that our investments are transformative for the environment and the economy, creating wealth and jobs. Our portfolio of offshore wind projects in the United States alone could represent more than $15 billion of investment in the coming years".
Commonwealth Wind includes two innovative initiatives that transform former coal-fired power plants into clean energy centres. Brayton Point in Somerset will be home to Massachusetts' first submarine cable factory, operated by Prysmian, and Salem Harbor will be the site of a new terminal for offshore wind projects, which will serve the Park City Wind and Commonwealth Wind projects. Both initiatives will create new permanent jobs across Massachusetts and bring this new sector to life.
Through Commonwealth Wind, the company has committed to invest $15 million in workforce training and supply chain development, based on the principles of diversity, equity and inclusion. It also plans to invest $20 million in education, innovation and environmental initiatives to benefit local communities.
Similarly, the project awarded today to the Spanish company definitively consolidates Iberdrola's Offshore Wind Control Centre in New Bedford, in the south of the state, a state-of-the-art facility that will remotely manage wind turbines and other offshore assets.
Massachusetts aims to have 4 GW of contracted offshore wind capacity by 2027 and 5.4 GW operational by 2035. The state already has 1.6 GW under development, including 800 MW Vineyard Wind One, the first commercial-scale project that Iberdrola has begun construction in Martha's Vineyard waters.
Iberdrola's history in the United States is a story of growth. In less than two decades, the company chaired by Ignacio Galán has not only managed to be listed on the New York Stock Exchange, but also to position itself as one of the largest electricity groups in the country, with a presence in 25 states. This is due to the significant commitment it made 17 years ago to clean energy in the country, where it has already installed more than 8,000 MW, has more than 170,000 kilometres of power lines and manages eight utilities in New York, Connecticut, Maine and Massachusetts, serving a population of 7 million people, with 3.3 million direct customers.
Iberdrola is one of the three largest renewable energy companies in the country, mainly with its new offshore wind projects, where it is a leader. In the US, it will invest more than 30 billion dollars between 2020 and 2025 in transmission and distribution networks and renewables, which will enable it to almost double its renewable capacity by 2025. These investments are aimed at increasing its presence in the offshore wind and solar photovoltaic sectors, as well as strengthening its leadership in onshore wind.
The company is a pioneer in the development of the US offshore wind market. It recently began developing Vineyard Wind One (800 MW), the first large offshore wind farm in the country.
Through its subsidiary, Avangrid, it also owns the Kitty Hawk development area (2,500 MW) in North Carolina; it has already started the BOEM permitting process for the Kitty Hawk North project (800 MW), the first project to be developed in this area, and manages other farms at an earlier stage of development.
Iberdrola is a world leader in the development of offshore wind energy, with assets of more than 38,000 MW. Focused on countries with ambitious targets, the company expects to have 18,000 MW of offshore wind capacity in operation by 2030 in different markets.
In Europe, Iberdrola is at the forefront of the offshore wind market with 1,300 MW of operational capacity in Germany (Wikinger) and the UK (East Anglia ONE and West of Duddon Sands) and almost 1,000 MW coming soon in Germany (Baltic Eagle) and France (St. Brieuc). In addition to the US, it manages a large portfolio of projects in the UK, France and Germany, as well as in new growth platforms such as Ireland, Sweden and Poland.
In the rest of the world, the company is consolidating new growth platforms in various regions, with a significant portfolio of projects in Asia (Japan and Taiwan), as well as in other emerging markets, such as Brazil.
In 2020, offshore wind projects contributed €585 million to the Iberdrola group's EBITDA, after growing by 72%; this contribution will rise to €2.3 billion by 2030.
