GIP Acquisition of 836MW Offshore Wind Projects in Northeastern United States

Project Overview

Eversource Energy, a Connecticut-based power producer, recorded an after-tax, other-than-temporary impairment charge, in the range of $1.4 – $1.6 billion in the fourth quarter of 2023. This prompted a decision to divest their 50% ownership interest in three offshore wind projects: South Fork Wind, Revolution Wind, and Sunrise Wind, to the selected buyer: Global Infrastructure Partners (“GIP”).

South Fork Wind, is New York’s first offshore wind farm. It will be located 35 miles east of Montauk Point with an underground transmission line that will deliver power to the local grid of East Hampton, NY. This project has 12 turbines with a capacity to generate 132 MW which will provide clean energy to 70,000 homes and offset tons of emission each year. This project was selected amongst 20 similar proposals as it was determined by PSEG/LIPA to be the most cost-effective solution. This project is operational as of Q4 2023.

Revolution Wind is located approximately 15 miles south of the Rhode Island coast, 32 miles southeast of the Connecticut coast, and 12 miles southwest of Martha’s Vineyard. The project will generate 704 MW of clean affordable energy for the residents of Connecticut and Rhode Island. The project is currently in the construction phase and is slated to be operational in 2025.

Sunrise Wind is located 30 miles east of Montauk Point and will deliver power to New York. This project can generate 924 MW which will provide electricity to nearly 600,000 homes in New York. Subject to approvals and U.S. BOEM’s NOI schedule, this project will be fully operational in 2025.

GIP engaged Mazars’ Americas Energy, Infrastructure & Environment practice to provide model due diligence services on this deal.

The Challenge

Deals of this size do not come up for sale very often. In addition to the size of the transaction, the client also had an exceptionally short timeline to finish their due diligence to proceed with the acquisition. The Mazars team reacted quickly to streamline the process in a time-efficient manner, effectively helping the client make sure that the model was accurate and reliable for their investment committee. This transaction was also occurring during the Christmas break, which meant resourcing was also tight with many taking holiday and traveling internationally.

Upon completion of initial due diligence, the seller then decided to sell the rights to Sunrise to another buyer, hence the cycle started again, giving the teams less than 24-48 hours to redo procedures on the remaining two assets. However, the Mazars team did not let up, working nights and weekends around-the-clock to support the client in this critical moment as they aimed to get the acquisition closed before the year-end deadline. They were able to deliver reports and helped present the business case to the Investment Committee, securing the