Avangrid sells Kitty Hawk North offshore wind lease area to Dominion

Avangrid has completed the sale of its 40,000-acre Kitty Hawk North offshore wind lease area to Dominion Energy for $160 million. The transaction includes a $117 million lease acquisition payment and reimbursement for associated development costs. The sale agreement was initially signed in July 2024.

Avangrid, part of the Iberdrola Group, retains the rights to Kitty Hawk South, where it plans to develop up to 2.4 GW of offshore wind capacity, supplying power to Virginia, nearby states, or private entities.

Additionally, Avangrid’s New England Wind 1 project, with a 791 MW capacity, was selected in Massachusetts’ regional offshore wind solicitation. Positioned 30 miles south of Barnstable, Massachusetts, the project will connect to the grid at Craigville Beach and operate alongside Vineyard Wind 1 (VW1), Avangrid’s first large-scale offshore wind project.

Avangrid CEO Pedro Azagra highlighted the transaction’s role in advancing the company’s capital investment strategy and expanding its renewable energy portfolio. In September 2024, Iberdrola shareholders also approved Avangrid’s plan to acquire the remaining 18% stake in the company for $2.55 billion.