VINEYARD WIND OFFSHORE WIND FARM

Vineyard Wind, our first offshore wind farm in the United States

Iberdrola, through Avangrid Renewables, a subsidiary of Avangrid Inc.(*), will take part in the development of a large-scale offshore wind farm off the coast of the state of Massachusetts, United States. Vineyard Wind will have a capacity of 800 megawatts (MW), with which it will be able to meet the energy needs of 1 million homes.

Location
Off the coast of the state of
Massachusetts (United States)

Number of turbines
84 turbines MHI V164-9.5 MW

Total installed capacity
800 MW

Local employment
3,600 workers

Start of operations
2021

Vineyard Wind
offshore wind farm

The Iberdrola group has made a decided commitment to offshore wind power as one of the keys to the company's future. The countries so far selected to develop this activity were the United Kingdom, Germany and France. And now the United States has been added to the list.

The group has acquired, through Avangrid Renewables, 50% of Vineyard Wind, the company promoting the project, which was previously owned by Copenhagen Infrastructure Partners (CIP).

Vineyard Wind offshore wind farm, which construction will start in 2019, will be located 15 miles to the south of Martha's Vineyard and approximately 34 miles to the Cape Cod mainland. Its commissioning will take place in 2021 and will have a forecast total installed capacity of 800 MW, produced by 84 turbines. The complex will generate approximately 2 gigawatts of wind power, enough to meet the demand of 1 million homes in Massachussetts.

Together, the future offshore wind farm will eliminate over 1.6 million metric tons of CO2 emissions annually, the equivalent of taking 325,000 vehicles off the roads, and will ensure the protection of groundwater. When the project becomes operational, it will offer $3.7 billion in energy-related cost savings to the New England region.

This project is one of the proposals submitted in response to the Green Communities Act, a law that came into force in Massachusetts in 2016 obliging power companies to purchase, within 10 years, up to 1,600 MW of production from offshore wind power facilities.

With this new development, the Iberdrola group confirms its role as a world benchmark electric company in the offshore wind power sector, with the ability to compete successfully in this highly specialised sector. Avangrid Renewables also has the rights to develop another wind farm project in the Kitty Hawk area, off the coast of North Carolina, with a capacity of up to 1,486 MW.

MHI VESTAS OFFSHORE WIND, NAMED AS PREFERRED SUPPLIER

Vineyard Wind has named MHI Vestas Offshore Wind as preferred supplier of its new offshore wind farm turbines. The new project will have 84 units of the MHI's V164 offshore wind turbine with 9.5 MW of capacity each one. This turbine is the most powerful commercial wind turbine in the world and was named Best Offshore Turbine 2017 by Windpower Monthly magazine.

MHI Vestas plans to hire more than 100 people and invest more than $15 million into the Massachusetts economy during the construction phase.

PRYSMIAN GROUP TO SUPPLY SUBMARINE CABLE FOR VINEYARD WIND

Vineyard Wind has entered into an agreement with Italian company Prysmian Group worth 200 million euros to design, manufacture, install and commission the submarine cabling system that will connect the offshore wind farm with the Continental US power transmission grid. The project, which will get the green light in late 2019 and will go live in 2021, entails laying a total of 134 kilometres of high-voltage alternating current electricity cable.

SIGNIFICANT MILESTONES IN THE PROJECT

Vineyard Wind continues to advance through the permitting process toward the onset of construction and operations. Recently, it has received the approval from the Massachussets Department of Public Utilities and, in February, the Executive Office of Energy and Environmental Affairs approved the Final Environmental Impact Report (FEIR). The next step will be the review of permits by the Commissions of Cape Cod and Martha's Vineyard, and the Conservation Commission of the town of Barnstable.

In December 2018, Vineyard Wind was granted rights to rent and exploit a new 132,370-acre area of federal waters of the United States for 1.53 million dollars. A total of 74% of this amount will be financed by Avangrid Renewables, despite the fact that the project developer, CIP, owns a 50% stake.

A month earlier, the developer awarded and signed long-term power purchase agreements with electricity distribution companies in Massachusetts. These PPA agreements are currently being reviewed by the Public Services Department. Currently, 70% of the supply contracts are already insured.

In October, Vineyard Wind entered into a Host Community agreement with the American city of Banstable, where by the developer will make annual payment to the city for at least, $1.534 million each year in combined property taxes and Host Community Payments. The pact guarantees a total Host Community Payment of $16 million, plus an additional $60,000 (adjusted for inflation annually), for each year the project is in operation beyond 25 years.

Also in October, Vineyard Wind signed a rental agreement with the New Bedford Marine Commerce Terminal to support the construction of the off-shore wind farm.

SUPPLYING POWER TO CONNECTICUT

Vineyard Wind has submitted a bid to supply power to the state of Connecticut. The project, which is currently being evaluated by the State Department of Energy and Environmental Protection (DEEP), includes a several million dollar investment to revitalise the activities of the port of Bridgeport.

The company intends to partner with two local companies, McAllister Towing and Bridgeport Boatworks, to develop an offshore wind farm in Bridgeport. If approved, this initiative will mean that over 500 jobs will be created in Connecticut during the construction phase and 1,900 during the entire project. It will also bring in over 4 billion dollars in revenue to the state, improve the reliability of the electricity supply and stabilise prices.
 

(*) 81.5% owned by Iberdrola.