Eversource Energy expects to write off as much as $1.6 billion against its 2023 fourth quarter earnings once it completes the sale of its ownership stake in three offshore wind projects, company officials have said. Eversouce is looking to sell its 50 percent ownership stake the company has in three wind projects it is doing in partnership with Danish wind power developer, Orsted. The three wind power projects Eversource is selling its ownership stake in are South Fork Wind, Revolution Wind and Sunrise Wind. The charge-off is required to account for the difference in value between when the project was first announced and what it is worth now. A variety of factors, including increased project costs and any constriction delays, can cause a project’s value to change. Erin Baker, an industrial engineering and operations research professor at the University of Massachusetts in Amherst and faculty director of the school’s Energy Transition Institute, said companies like Eversource are selling their ownership stakes in wind power projects “because of a mismatch between the current interest rates and inflation and the negotiated long term contracts, at least in some cases.”
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