(Reuters) - Avangrid ( AGR ), part of the Iberdrola Group, has completed the sale of its Kitty Hawk North offshore wind lease to Dominion Energy ( D ) at $160 million, the company said on Thursday.

The lease covers Avangrid's ( AGR ) nearly 40,000-acre Kitty Hawk North wind farm proposed more than 36 miles (57.94 km) from Virginia Beach, Virginia, and associated assets. The sale includes a lease acquisition payment of $117 million and reimbursement of associated development costs to Avangrid ( AGR ).

Avangrid ( AGR ) retains ownership of the Kitty Hawk South lease, continuing its development to potentially deliver up to 2.4 gigawatts of power to North Carolina, Virginia and other states.