The offshore lease area has potential to deliver 2.4GW of power to North Carolina, Virginia and other states. Credit: ShutterDesigner/Shutterstock.

Avangrid has announced the completion of the sale of its Kitty Hawk North offshore wind lease area to Dominion Energy for $160m.

The deal includes the 40,000-acre lease area and associated assets.

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Avangrid, a member of the Iberdrola Group, will retain ownership and rights to the Kitty Hawk South lease, where it plans to continue development with the potential to deliver 2.4GW.

The power generated by the Kitty Hawk South lease area will be supplied to Virginia, other states or private companies.

The transaction comprises a lease acquisition payment of $117m and associated development cost reimbursement to Avangrid.

The agreement for the sale of the lease area was signed by Avangrid and Dominion Energy in July 2024.

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Avangrid also noted that its New England Wind 1 project, with a capacity of 791MW, was selected by the Commonwealth of Massachusetts in a multi-state regional offshore wind solicitation.

This project is strategically located in federal lease area OCS-A-0534, 30 miles (48km) south of Barnstable, Massachusetts, and will connect to the grid under the Craigville Beach parking lot in Barnstable.

New England Wind 1 will be alongside VW1, Avangrid’s inaugural large-scale offshore wind project currently under construction 15 miles south of Martha’s Vineyard.

Avangrid CEO Pedro Azagra stated: “Closing this transaction is a tremendous development for our key business objectives and strategic priorities, positioning us to pursue new opportunities for investment across our renewables portfolio.

“As we close this sale, focus on delivering on our capital investment plan and continue the development of Kitty Hawk South, Avangrid is proud of its work to accelerate the clean energy transition in the US.”

In September 2024, Iberdrola revealed that shareholders of Avangrid had approved its plan to buy the remaining 18% stake in the company for $2.55bn.