Funding represents critical milestone toward delivery of first power from nation's first large-scale offshore wind project
Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group announced today (Dec 18) that the Vineyard Wind 1 project received the first funding from the first-of-its-kind tax equity package signed in October 2023, representing a critical milestone toward the delivery of first power from the project. Supportive government actions, such as federal tax credits for renewable energy projects, have been instrumental for Vineyard Wind 1, which is on track to be the first large-scale offshore wind project in the U.S.
"Receiving this first funding from our tax equity agreement is another key achievement that takes us one important step closer to the historic delivery of first power to Massachusetts," said Avangrid CEO Pedro Azagra, Avangrid CEO. "As we continue to execute our construction and financing plan for Avangrid's Vineyard Wind 1, we are demonstrating our ongoing commitment to helping turn the dream of offshore wind in the U.S. into reality."
Vineyard Wind 1 began on-site construction in late 2021, achieved steel-in-the-water in June 2023, and completed the nation's first offshore substation in July 2023. In July 2021, Vineyard Wind signed the first Project Labor Agreement for an offshore wind project in the United States, which provides for the creation of 500 union jobs through the project. On December 14, 2023, Avangrid announced that Vineyard Wind 1 has delivered nearly double of its commitment through the PLA by creating 937 union jobs through two years of construction.
Vineyard Wind 1 is an 806 MW project located 15 miles off the coast of Martha's Vineyard and will be the first commercial-scale offshore wind project in the United States. The project will generate electricity for more than 400,000 homes and businesses in the Commonwealth of Massachusetts under its competitive long-term power purchase agreements with National Grid, Eversource, and Unitil. The project is expected to save ratepayers $1.4 billion over the first 20 years of operation and to reduce carbon emissions by more than 1.6 million tons per year.
About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $41 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs more than 7,600 people and has been recognized by JUST Capital for three consecutive years as one of the JUST 100 companies - a ranking of America's best corporate citizens. In 2022, AVANGRID ranked second within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.'s Sustainable Development Goals and was named among the World's Most Ethical Companies in 2022 for the fourth consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.
About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola's main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
With a workforce of nearly 40,000 and assets in excess of 141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of 12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than 130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.
