Eversource Energy sells 175,000 acres in Massachusetts for $625m
Energy - SEPTEMBER 8, 2023

Eversource Energy sells 175,000 acres in Massachusetts for $625m

by Released

Eversource Energy has completed its sale to Ørsted of an uncommitted lease area of about 175,000 developable acres 25 miles off the south coast of Massachusetts for $625 million in an all-cash transaction.

“Eversource is fully committed to being a catalyst to the region’s clean energy transition, with our regulated companies procuring power from offshore wind as well as building many of the facilities that will enable more than 9,000 megawatts of offshore wind generation to reach the homes and businesses of Southern New England,” said Joe Nolan, Eversource’s president, CEO, and chairman. “We share the same goals as the states in which we operate when it comes to building the clean energy delivery systems of the future. With Ørsted as the 100 percent owner of this lease area, we are confident it will play a critical role in decarbonizing the generation mix of southern New England and New York.”

Eversource and Ørsted today also have announced the execution of a Tax Equity Capital Contribution Agreement for South Fork Wind. Eversource will use a portion of the proceeds from the lease area sale to provide its anticipated tax equity investment for South Fork Wind. The contribution for Eversource’s new tax equity member interest is expected to be about $545 million. Eversource expects to recover this tax equity member interest investment primarily in the form of investment tax credits as turbines are placed in service for South Fork Wind. These credits will be utilized to reduce federal tax liability, including refunds expected during the next nine months. Eversource also expects to receive about $273 million of this contribution as a distribution from the project before its commercial operations date, as it remains a managing member of the project, along with Ørsted. Construction of South Fork Wind began in early 2022, with commercial operation expected in late 2023. Eversource’s tax equity investment in South Fork Wind is expected to close in third quarter.

The transaction, which was announced on May 25, 2023, closed today after approval from the Committee on Foreign Investment in the United States.

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