MENU - Media Contact

Media Contact

For media inquiries, email: corporatecommunications@avangrid.com 

MENU - PRESS ROOM


Press Releases

10/25/2023

Avangrid and Copenhagen Infrastructure Partners Announce Largest Single Asset Tax Equity Financing and First Large-Scale Offshore Transaction in the U.S.

Avangrid and Copenhagen Infrastructure Partners Announce Largest Single Asset Tax Equity Financing and First Large-Scale Offshore Transaction in the U.S.

$1.2 billion in capital raised for Vineyard Wind 1 project

BOSTON, Mass. — October 25, 2023 — Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, and Copenhagen Infrastructure Partners (CIP), a global leader in green energy investment, announced today that the Vineyard Wind 1 project closed a first-of-its-kind tax equity package for commercial scale offshore wind with three US-based banks. The $1.2 billion investment transaction was reached with J.P. Morgan Chase, Bank of America and Wells Fargo, making it the largest single asset tax equity financing and the first for a commercial scale offshore wind project.  

“We are continuing to make history with this first-in-the-nation project,” said Pedro Azagra, Avangrid CEO. “Finalizing this tax equity transaction is a critical milestone in executing the financing plan for Vineyard Wind 1. It will allow us to continue financing the project to make it operational. We are now one step closer to delivering clean, renewable offshore wind energy to Massachusetts homes and businesses.” 

“Closing on a tax equity package has always been a central element to achieving financial success for the first-of-its-kind Vineyard Wind 1,” said Tim Evans, partner and Head of North America for CIP. "With this investment, Vineyard Wind 1 moves Massachusetts closer to its goal of reducing greenhouse gas emissions by 50% by 2030.”

CCA Group, Santander Corporate & Investment Banking, and Kirkland & Ellis LLP served as financial and legal advisors to Vineyard Wind 1, CIP and Avangrid.

"The Inflation Reduction Act marked the most significant action Congress has taken on clean energy and climate change in our nation’s history, and today's announcement is a critical reminder of the impact the IRA is having here at home," said Congressman Bill Keating. "The closing of this transaction marks a critical step for the financing of Vineyard Wind I, and in turn for our clean energy economy and the union jobs that have been guaranteed through the first-of-its-kind Project Labor Agreement between Vineyard Wind and the Massachusetts Building Trades."

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.

Vineyard Wind 1 is an 800 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

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $44 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs approximately 8,000 people and has been recognized by JUST Capital in 2021, 2022, 2023 and 2024 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2024, Avangrid ranked first among utilities and 12 overall. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2024 for the sixth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. 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.

Nodo: liferay-0:8080