Avangrid is the U.S. subsidiary of Spain's Iberdrola. The companies announced on Monday that Avangrid has agreed to sell the Kitty Hawk North offshore lease area to utility Dominion Energy, for approximately $160 million.

Dominion announced that Kitty Hawk Wind North, located offshore North Carolina, will now be known as Coastal Virginia Offshore Wind South (CVOW-South) and have a power of 800 Megawatts (MW), which is enough to supply 200,000 homes and business, according to a Dominion statement.

Dominion has begun construction of the CVOW commercial project (2.6 gigawatts, or GW), which is situated about 25 miles to the north of CVOW-South.

Both utilities expect that the deal will close in the fourth-quarter of 2024.

Avangrid has said that it will continue to develop Kitty Hawk South and retain ownership of the lease and the associated rights. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shashesh Kuber