Avangrid, a US subsidiary of Iberdrola, and its partner Copenhagen Infrastructure Partners (CIP) have secured $1.2bn (€1.14bn) in tax equity financing for the Vineyard Wind 1 offshore wind farm.

This first-of-its-kind tax equity package for a commercial-scale offshore wind farm was provided by JP Morgan Chase, Bank of America and Wells Fargo.

Avangrid CEO Pedro Azagra stated: “We are continuing to make history with this first-in-the-nation project. Finalising this tax equity transaction is a critical milestone in executing the financing plan for Vineyard Wind 1.

“It will allow us to continue financing the project to make it operational. We are now one step closer to delivering clean, renewable offshore wind energy to Massachusetts homes and businesses.”

CIP partner and North America head Tim Evans stated: “Closing on a tax equity package has always been a central element to achieving financial success for the first-of-its-kind Vineyard Wind 1.

“With this investment, Vineyard Wind 1 moves Massachusetts closer to its goal of reducing greenhouse gas emissions by 50% by 2030.”

Vineyard Wind 1 is an 806MW project located 15 miles (24km) offshore Martha’s Vineyard. It is being built with an investment of $2.3bn.

The wind farm will be powered by 62 GE Haliade-X turbines, each with 13MW of power generating capacity.

It will generate enough clean electricity for 400,000 Massachusetts households, while avoiding 1.6 million tonnes of carbon emissions annually.

Onsite construction on the project began in late 2021. The offshore substation was installed in July 2023.

In October 2023, the first turbine at the wind farm site was installed. This single turbine can generate enough clean power to supply 6,000 homes.