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AVANGRID Acquires Major Stake in Massachusetts Off-Shore Wind Project with Vineyard Wind

AGR

AVANGRID Acquires Major Stake in Massachusetts Off-Shore Wind Project with Vineyard Wind

Partnership combines global experience, strategic expertise, and deep financial backing

Avangrid Renewables and Vineyard Wind, announced today that they have formed a strategic partnership to jointly develop a large scale wind energy project off the coast of Massachusetts. Avangrid Renewables is acquiring a 50 percent ownership interest in Vineyard Wind, the offshore wind energy developer that is part of the Copenhagen Infrastructure Partners (CIP) portfolio.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170509005920/en/

Avangrid Renewables is a subsidiary of AVANGRID Inc. (NYSE:AGR), Iberdrola S.A. (Madrid:IBE), a worldwide leader in the energy industry with significant offshore wind holdings in Europe, owns 81.5% of the outstanding shares of AVANGRID common stock.

The partnership of the two companies will bring extensive offshore wind expertise and substantial financial firepower to the Commonwealth’s initiative to build offshore wind projects in Massachusetts.

Last summer, Massachusetts required utilities to procure 1,600 megawatts (MW) of clean, offshore wind energy within the next decade, setting off an intense competition among offshore wind developers in the region. When the 1,600 MW of generation capacity are completed, they will generate enough clean, homegrown energy to power the equivalent of more than 750,000 Massachusetts homes every year.

Three companies to date have acquired lease rights to build projects off the coast, including Vineyard Wind. Vineyard Wind’s project area is about 15 miles south of Martha’s Vineyard.

“This is a major strategic partnership that combines Avangrid Renewables’ US onshore wind development capabilities with Copenhagen Infrastructure Partners and Iberdrola’s European offshore wind expertise to give Vineyard Wind a significant advantage in building Massachusetts’ first offshore wind project,” said Lars Thaaning Pedersen, co-CEO of Copenhagen Offshore Partners, CIP’s offshore wind development company.

Iberdrola holds offshore wind projects under development or construction in England, Germany & France. Avangrid Renewables recently won its first offshore wind lease auction in the US off the coast of North Carolina. Copenhagen Infrastructure Partners is providing investment and management for projects under construction in Germany and Scotland. Executives with extensive offshore wind experience from these European projects will now be joining Vineyard Wind’s local development team, based in New Bedford, Mass.

“This partnership allows Vineyard Wind to leverage the financial firepower that both CIP and AVANGRID can bring to bear to develop and build this project,” Pedersen added. “AVANGRID’s interest in this project demonstrates that they recognize the strength of the local team, the local support we have, and the exciting potential for offshore wind in Massachusetts.”

CIP and its executives have developed or invested in some of the biggest offshore wind projects in the world, including the 402 MW Veja Mate project off of Germany and the 588 MW Beatrice project off the coast of Scotland. CIP manages more than $4 billion in assets. It acquired Vineyard Wind in August 2016.

“Our equal partnership in this effort demonstrates the strong commitment we’ve made to execute our growth strategy and expand our wind portfolio across the US,” said James P. Torgerson, AVANGRID, CEO. “When you look at our longer term position with the Kitty Hawk off-shore lease in NC and factor in this more immediate off-shore opportunity in Massachusetts, combined with our family of company’s extensive experience and knowledge, you recognize we are well positioned to grow this sector in the US.”

Vineyard Wind plans to begin construction of its project in early 2020, in order to bring the economic development and clean energy benefits of offshore wind to Massachusetts as soon as possible. Vineyard Wind has also worked hard to establish long-term relationships and partnerships with the local community that will provide significant benefit to the project.

About AVANGRID

AVANGRID, Inc. (NYSE:AGR) is a diversified energy and utility company with more than $31 billion in assets and operations in 27 states. The company owns regulated utilities and electricity generation assets through two primary lines of business, Avangrid Networks and Avangrid Renewables. Avangrid Networks is comprised of eight electric and natural gas utilities, serving approximately 3.2 million customers in New York and New England. Avangrid Renewables operates 6.5 gigawatts of electricity capacity, primarily through wind power, in 22 states across the United States. AVANGRID employs approximately 6,800 people. For more information, visit www.avangrid.com.

About Avangrid Renewables

Avangrid Renewables, LLC is a subsidiary of AVANGRID, Inc. (NYSE:AGR) and part of the IBERDROLA Group. IBERDROLA, S.A., an energy pioneer with the largest renewable asset base of any company in the world, owns 81.5% of the outstanding shares of AVANGRID common stock. Avangrid Renewables, LLC is headquartered in Portland, Ore., and has more than $10 billion of operating assets totaling more than 6,000 MW of owned and controlled wind and solar generation in 22 U.S. states. Avangrid Renewables recently changed its legal name from Iberdrola Renewables, LLC. For more information, visit www.avangridren.com.

About Vineyard Wind

Vineyard Wind, a portfolio company of funds of Copenhagen Infrastructure Partners (CIP), is an offshore wind development company, based in New Bedford, Mass., that is seeking to build the first large-scale offshore wind energy project in the US.

About Copenhagen Infrastructure Partners

Copenhagen Infrastructure Partners K/S (CIP) is a fund management company founded in 2012 by senior executives from the energy industry. CIP and its executives have developed some of the biggest offshore wind projects in the world, and CIP manages more than $4 billion in assets.

Media:
For AVANGRID:
Michael A. West Jr., 203-499-3858
Michael.west@avangrid.com
or
For Vineyard Wind and CIP:
Rasky Partners
John Lamontagne, 617-391-9663
jlamontagne@rasky.com