Eversource Energy in Talks to Sell Offshore Wind Stakes, Faces Impairment Charges
Eversource Energy, a leading energy company, has announced that it is currently engaged in negotiations to sell its stakes in three offshore wind projects. The company also disclosed that it will incur impairment charges of up to $1.6 billion as a reflection of the challenges faced by the industry.
The undisclosed buyer is reportedly a private infrastructure investor, and Eversource Energy is in advanced stages of discussion to finalize the sale of its stakes in South Fork Wind, Revolution Wind, and Sunrise Wind. These stakes are currently held by Eversource through joint ventures with Ørsted, a renowned Danish energy company.
Various factors have contributed to the decision to sell, with Eversource pointing out issues like supply-chain limitations and uncertainties surrounding the New York state re-bidding process. These challenges have impacted the sale price and have prompted Eversource Energy to take an impairment charge ranging from $1.4 billion to $1.6 billion during the fourth quarter.
Joe Nolan, the Chief Executive of Eversource, acknowledged the difficulties faced by offshore wind projects in the United States. He emphasized the ongoing disruptions and inflationary pressures experienced in the supply chain, which is still in its early stages within the growing U.S. market.
In conclusion, Eversource Energy's decision to divest its stakes in offshore wind projects underscores the current market conditions and obstacles faced by the industry. The company's proactive approach aims to navigate through these challenges while ensuring a sustainable long-term future for the offshore wind sector.
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