Eversource-GIP at $4.26mn/MW V/S Dominion-Stonepeak at $2.3mn/MW: Enerdatics Analyses Top US Offshore Wind Deals
Enerdatics has benchmarked Dominion Energy-Stonepeak’s transaction to the recent Eversource - GIP offshore wind deal and our analyses reveals several similarities and differences between the agreements:
Similarities:
-- Both deal structures enable the buyer to hedge against construction risk by setting a cap on their financial exposure. Until reaching this cap, the construction costs will be evenly split with the seller; thereafter, any excess will be borne by the seller.
-- The transacted assets have 20-year utility PPAs.
-- Assets are ready for construction and expected to be operational between 2026-2028.
Differences:
-- The Eversource portfolio is backed by a weighted average PPA tariff of $121.85/MWh, while Dominion’s CVOW project sells power at $93.1/MWh
-- The Eversource portfolio has reached FID and secured funds through debt and green bonds for construction, Conversely, there has been no debt raise for CVOW yet, however, FID is anticipated shortly
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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