AVANGRID (AGR) Installs First Turbine for Vineyard Wind 1
AVANGRID, Inc. AGR and Copenhagen Infrastructure Partners (“CIP”) announced the successful installation of the first GE Haliade-X Wind Turbine Generator (“WTG”) for the first-in-the-nation Vineyard Wind 1 project.
Vineyard Wind began offshore construction in late 2022, achieved steel-in-the-water in June and completed the nation’s first offshore substation in July. In order to store and export the power produced by the wind turbine generators, an offshore substation is a must for an offshore wind farm. It acts as a connecting point between the onshore electricity grid and the offshore leasing area's wind turbine generators.
According to a statement from the companies, the turbine, which has a nameplate capacity of 13 megawatts (MW), can power more than 6,000 homes and businesses in the state. The project comprises the construction of 62 wind turbines, totaling 806 MW, which can power roughly 400,000 homes and businesses in Massachusetts.
AGR is focused on expanding its clean energy generation capacity and adding more wind and solar sources to its portfolio. The company has long-term investment plans to further upgrade its infrastructure. It intends to deliver a compound annual growth rate of 6-7% during 2022-2025.
Growth Prospects
Utilities in the United States are gradually shifting focus and concentrating more on clean energy sources like renewable energy to generate electricity. Wind and solar are the predominant sources of power generation that will help achieve the target of net zero emissions by 2050.
Offshore wind projects are expected to grow rapidly in the coming years as the turbines at sea make use of stronger winds. According to a report by the U.S. Department of Energy, the capacity of the currently operating and under construction U.S. offshore wind energy projects increased 15% from the previous year’s level to 52,687 MW. When fully developed, these projects would be enough to power more than 18 million American homes.
Per a Precedence Research report, the global offshore wind energy market was valued at $33 billion in 2022 and is expected to hit $179.41 billion by 2032. The market is poised to witness a CAGR of 18.50% during 2023-2032.
Focus on Renewable Energy
Avangrid continues to advance its mission to accelerate the energy transition toward a cleaner, greener future in Massachusetts and the United States by constructing groundbreaking projects, such as the Vineyard Wind 1. The company has also increased the presence of sustainable energy in Texas, where it currently produces more than 1,250 MW through six wind farms and has a pipeline of 1,300 MW projects.
Along with AGR, other electric power companies like Dominion Energy D, Xcel Energy, Inc. XEL and PPL Corporation PPL are also set to benefit from the growing need for renewable energy.
Dominion Energy’s long-term objective is expected to add 24 gigawatt (GW) of battery storage, solar, hydro and wind (offshore as well as onshore) projects by 2036, and increase the renewable energy capacity by more than 15% per year, on average, over the next 15 years.
Dominion Energy plans to develop the 2,640-MW offshore wind project, located 27 miles off the coast of Virginia Beach, VA. This will further expand the state’s renewable footprint.
Xcel Energy is focused on clean-energy transition. After completing six wind projects with 1,500 MW capacity in 2020, XEL completed four wind farms, adding another 800 MW of clean energy generation capacity to its portfolio.
Total company-owned solar projects at Sherco exceed 700 MW that will utilize the transmission rights for the first of the three retiring coal units there. Xcel Energy's total wind capacity is 11,000 MW, out of which 4,500 MW is from owned wind farms.
In October 2023, PPL’s subsidiary, Rhode Island Energy, issued a Request for Proposals (RFP) to secure an additional 1200 MW of offshore wind to help meet the state's energy needs. This is Rhode Island's largest-ever RFP for renewable energy.
In accordance with the state's Affordable Clean Energy Security Act, Rhode Island Energy is looking for proposals from prospective developers. It is doing so to negotiate long-term power purchase agreements for energy and renewable energy certificates from the recently completed offshore wind projects.
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