July 8 (Reuters) - Avangrid ( AGR ), the U.S. unit of

Spain's Iberdrola, has agreed to sell its Kitty Hawk

North offshore wind lease area to utility firm Dominion Energy ( D )

for about $160 million, the companies said on Monday.

Located in offshore North Carolina, Kitty Hawk Wind North

will be renamed Coastal Virginia Offshore Wind (CVOW)-South and

would have a capacity of 800 megawatts (MW), enough to serve

200,000 homes and businesses, Dominion said in a statement.

Dominion is currently constructing the 2.6 gigawatts (GW)

CVOW commercial project, which is located about 25 miles north

of the CVOW-South lease.

The two utilities expect the deal to close in the fourth

quarter of 2024.

Avangrid ( AGR ) said it will retain the ownership and associated

rights to the Kitty Hawk South lease, and continue to develop

the area.