Avangrid, Inc.

Overview

Avangrid is a U.S. utility and renewable energy company, the wholly owned U.S. subsidiary of Iberdrola S.A., one of the world's largest wind energy operators. Headquartered in Orange, Connecticut, Avangrid operates two principal businesses: a regulated networks segment serving more than 3.4 million electric and gas customers across the Northeast, and Avangrid Renewables, one of the largest U.S. renewable energy developers and operators. Across both businesses Avangrid operates more than 11 gigawatts of generation capacity at roughly 100 facilities.

Iberdrola formed Avangrid in 2015 by merging its existing U.S. utility holdings (primarily UIL Holdings in Connecticut) with Iberdrola USA, which included the Upstate New York utilities it had acquired from Energy East in 2008. Avangrid went public on the NYSE in December 2015 with Iberdrola retaining majority control. On December 23, 2024, Iberdrola completed a $35.75-per-share cash merger to acquire the remaining roughly 18.4% it did not own (about $2.6 billion), taking Avangrid fully private; the company was delisted from the NYSE and terminated its SEC reporting in early 2025.

Business segments

Offshore wind portfolio

Avangrid holds federal offshore wind leases off Massachusetts and North Carolina and draws on Iberdrola's European offshore wind experience. Its operational flagship is Vineyard Wind 1, an 806 MW project off Martha's Vineyard developed as a 50/50 joint venture with Copenhagen Infrastructure Partners; it was the first U.S. commercial-scale offshore wind farm to deliver power. In July 2024 one of its GE Vernova blades failed off Nantucket. GE Vernova attributed the failure to a manufacturing deviation at its Gaspé, Canada plant, the affected blades were ordered removed, and regulators suspended and later allowed work to resume.

Avangrid's development pipeline centers on New England Wind, a two-phase project in federal waters south of Martha's Vineyard whose Construction and Operations Plan BOEM approved in July 2024. New England Wind 1 (791 MW, the former Park City Wind) was selected in Massachusetts's September 2024 offshore solicitation; New England Wind 2 (about 1,080 MW, the former Commonwealth Wind) has no current state offtake after earlier Massachusetts and Connecticut contracts were terminated in 2023. In 2024 Avangrid sold its Kitty Hawk North lease off North Carolina to Dominion Energy for about $160 million and retained Kitty Hawk South. Iberdrola's offshore experience includes the operating East Anglia ONE project in the UK.

U.S. offshore wind has also faced shifting federal policy. A January 2025 executive order paused new offshore wind leasing and permitting; a federal court vacated that order in December 2025. On December 22, 2025, the Interior Department issued stop-work orders, citing national-security and radar-interference concerns, on five East Coast projects under construction, including Vineyard Wind 1. The actions are being litigated, and the status remains unsettled as of mid-2026.

Iberdrola relationship

Avangrid is the primary vehicle through which Iberdrola executes its U.S. strategy. Iberdrola views the United States as one of its four core geographies, alongside Spain, the UK (ScottishPower), and Brazil (Neoenergia), and has committed to significant capital investment in Avangrid's regulated networks and renewables platform over its multi-year investment plans.

The parent-subsidiary relationship gives Avangrid access to Iberdrola's global procurement scale (particularly valuable for wind turbine supply agreements), its offshore wind construction and operations expertise, and its investment-grade balance sheet. Iberdrola's full buyout of Avangrid in December 2024 simplified the corporate structure and removed the friction of managing minority shareholder interests; Avangrid is now a wholly owned strategic subsidiary.

Financial performance

Avangrid's last audited standalone full year was FY2023, with revenue of about $8.31 billion split between its Networks and Renewables segments. Since the December 2024 take-private, its results are consolidated within Iberdrola's reporting rather than disclosed standalone. The Networks segment delivers stable, regulated earnings underpinned by multi-year rate cases in New York, Maine, and Connecticut. Renewables earnings are more variable, reflecting wind resource variability, PPA contract terms, and project development costs.

In March 2025 Avangrid announced a $20 billion investment plan for U.S. grid infrastructure through 2030, weighted toward grid modernization, storm hardening, and interconnection across its Networks utilities. The program is funded through operating cash flows, asset-level project financing, and capital support from Iberdrola.

Key considerations

Avangrid's regulated utilities have faced persistent regulatory and operational challenges. Central Maine Power's 2017 "SmartCare" billing rollout drew years of customer complaints and state probes, and in New York the Public Service Commission penalized RG&E about $11.5 million and NYSEG about $7.1 million in 2024 for failing customer-service metrics, alongside a management and operations audit. Restoring regulatory relationships and customer trust influences the utilities' ability to earn their allowed returns on equity.

The U.S. offshore wind market has experienced significant turbulence since 2022, driven by supply chain cost escalation, rising interest rates, and the difficulty of renegotiating fixed-price PPAs signed under more favorable assumptions; since 2025 it has also faced contested federal permitting actions. Avangrid was among the developers that terminated several contracted projects rather than build at a loss. Re-contracting its offshore pipeline at viable economics, and resolving the federal stop-work order affecting Vineyard Wind 1, is central to the economics of its lease holdings.

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