April 15, 2020 Read More →

Spain’s Iberdrola targets Denmark’s Ørsted for top spot in U.S. offshore wind market

Greentech Media:

Spanish utility group Iberdrola wants to be the biggest player in the U.S. offshore wind market, but it will need to go through early market front-runner Ørsted to get there.

Iberdrola, among the world’s largest wind power generators, plans to steamroll its way through the coronavirus crisis, with CEO Ignacio Galán announcing plans this month to increase investment in renewables projects and continue adding jobs as soon as the public health crisis is over. Up to a quarter of the €10 billion ($11 billion) the company plans to invest this year will go toward offshore wind.

Iberdrola has long been a major player in U.S. renewables and remains one of the country’s largest owners of onshore wind farms through its controlling stake in Avangrid, a utility and renewables developer. The U.S. — and Avangrid — is now a central plank of Iberdrola’s global offshore wind push, accounting for more than 60 percent of its 12-gigawatt global offshore pipeline.

Avangrid is joint owner of Vineyard Wind, whose 800-megawatt project for Massachusetts is likely to become one of the first major U.S. offshore wind farms despite its ongoing permitting delay saga. Vineyard is now expected to be finished in 2023; Iberdrola confirms there has been no change in the project timeline despite the coronavirus shutdown.

“We’re in a very good position to be the leading player [in the U.S.],”Jonathan Cole, managing director of Iberdrola’s offshore wind business, told GTM. “We’re going to be the first to build a large-scale offshore wind project in Vineyard I. That puts us in a strong position and allows us to just keep growing and growing beyond that.” 

Denmark’s Ørsted, which is the world’s leading offshore wind developer, holds a formidable position in the U.S., with interests in projects across five states totaling more than 8 gigawatts. By the middle of this decade, Ørsted could own more than 3 gigawatts of U.S. offshore wind, compared to 800 megawatts for Iberdrola if Vineyard successfully builds its first two projects in New England.

[John Parnell]

More: Iberdrola plans to take top spot in U.S. offshore wind (and keep it)

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