Vineyard Wind 1 is on track to start generating power by the end of this year and achieve commercial operation by the end of 2024, Avangrid told investors in its third-quarter earnings call for 2023.

The 806-MW project’s construction is about 60% complete, with the offshore substation, 15 array cables, 25 monopiles and two turbines already installed, Avangrid CEO Pedro Azagra said.

Vineyard Wind is competing with New York’s South Fork Wind to be the first utility-scale offshore wind project to begin operations in the U.S.

“The lessons learned will be invaluable as we continue developing this project and others in the U.S,” Azagra said.

On Oct. 25, the company announced a $1.2 billion tax equity transaction for the Vineyard Wind 1 project with J.P. Morgan Chase, Bank of America and Wells Fargo. The financing uses tax credits from the Inflation Reduction Act (IRA), and marks “the largest single asset tax equity financing and the first for a commercial scale offshore wind project,” the company said.

“The IRA is bringing tremendous opportunities to the industry,” Azagra said, adding that the act is essential to the company’s plan to repower up to 4.6 GW of renewable assets by 2032, with the goal of increasing production by about 30%. “Repowering does not require full development and permitting, allowing the projects to reach completion much faster.”

Azagra also touted the successful termination of the Commonwealth Wind and Park City Wind power purchase agreements.

“By terminating these contracts, we have improved the economics of our offshore wind projects, and avoided billions in write-offs at minimum costs,” he said. “Now we have two highly valuable leases ready to leverage, and experience as part of Iberdrola Group developing, financing and constructing offshore projects like Vineyard Wind 1.”

“We’re not going to put in danger the financial health of the company,” Azagra said. “We’re not going to be in the race of growth for megawatts, we’re in the race of making money.”

Azagra also addressed what he called the “challenging regulatory environment in Connecticut.” Earlier this year, the state’s Public Utilities Regulatory Authority (PURA) denied a request from Avangrid subsidiary United Illuminating for an 8% rate increase over three years. In response, United Illuminating has filed an appeal with the New Britain Superior Court.

PURA’s decision would prevent the company from recovering “reasonably incurred costs, and [earning] a fair return on enough capital,” Azagra said. He added that this would “hinder [Avangrid’s] ability to invest in the grid to improve the storm resiliency and reliability and would slow down the state’s progress on its clean energy goals.”

The Energy and Policy Institute (EPI), a utility watchdog group, has alleged the company was behind a pressure campaign that coordinated employees and charitable organizations to oppose a draft version of PURA’s decision. EPI found the comments contained similar or identical language that it traced back to a United Illuminating lobbyist.