Iberdrola has formally closed the deal to take control of more than 2,000 megawatts (MW) of offshore wind capacity in the United States, consolidating its position as one of the largest developers of this technology in the country.
The restructuring of its joint venture with Copenhagen Infrastructure Partners (CIP) means Iberdrola subsidiary Avangrid Renewables takes full ownership of Commonwealth Wind, which was selected in December to supply offshore wind power to utilities in Massachusetts. The 1,232 megawatt (MW) project, New England's largest offshore wind facility to date, will create 11,000 full-time equivalent jobs over its lifetime and generate enough energy to power 750,000 homes a year.
Through the agreement, the Spanish company also obtains exclusive ownership of Park City Wind, an 804 MW project in Connecticut, which is at an advanced stage of development, with a PPA secured and BOEM permits in the pipeline.
Iberdrola also retains 50% of the 800 MW Vineyard Wind 1 wind farm in Massachusetts, whose construction began in the last quarter of 2021, as well as the right to take control of it during the operation phase. When it comes online in 2024, Vineyard Wind 1 will be the first commercial-scale offshore wind farm to operate in the country.
In total, Iberdrola's investment in its US offshore portfolio could exceed $15 billion in the coming years.
Iberdrola has grown considerably in two decades of operating in the United States. Its subsidiary Avangrid, which was listed on the New York Stock Exchange six years ago, is present in 25 states and manages more than 8,000 MW of generating capacity and more than 170,000 kilometres of power lines through eight utilities in New York, Connecticut, Maine and Massachusetts, serving a population of 7 million people, with 3.3 million direct customers.
In addition to being one of the three largest wind and solar energy companies in the US, Iberdrola is now a leader in offshore wind, with a portfolio of 4,900 MW. It plans to invest more than $30 billion between 2020 and 2025 in transmission and distribution networks and renewables, which will allow it to nearly double its renewable capacity by 2025. These investments are aimed at increasing its presence in the offshore wind and solar PV sectors, as well as strengthening its leadership in onshore wind.
Through its subsidiary, Avangrid, it also owns the Kitty Hawk development area (2,500 MW) in North Carolina, 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 wind farms at an earlier stage of development.
Iberdrola is a world leader in the development of offshore wind energy, with an operational capacity portfolio and early-stage developments of approximately 35,000 MW. Focused on countries with ambitious targets, the company expects to have 18,000 MW of offshore wind power in operation by 2030.
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 several regions, with a significant pipeline of projects in Asia (Japan and Taiwan), as well as in other emerging markets such as Brazil.
Iberdrola has recently launched a record investment plan of 150 billion euros for the next decade, nearly 75 billion by 2025. These plans will enable the company to triple its renewable capacity to 95,000 MW and double its grid assets, supporting the ongoing energy transition in the world's major economies.
Having already invested $120 billion over the past twenty years, Iberdrola is a leader in renewable energy with more than 35,000 MW of installed capacity, making its generation fleet one of the cleanest in the energy sector.
The company supplies energy to some 100 million people in dozens of countries and supports 400,000 jobs worldwide. Its main businesses are in the United States (Avangrid), United Kingdom (ScottishPower), Spain, Brazil (Neoenergia) and Mexico. Globally, Iberdrola also has offices and an extensive portfolio of clean energy projects in Australia, Germany, France, Japan, Italy, Poland, Sweden, Ireland, Taiwan, Vietnam and Greece.