New York approves 2 offshore wind projects totaling 1.7 GW

New York State has conditionally awarded two offshore wind projects from its fourth offshore wind solicitation – an 810-MW project, Empire Wind 1 (developed by Equinor), and Sunrise Wind, a 924-MW project (developed by Ørsted and Eversource).

The projects will create more than 800 family-sustaining construction jobs and invest $2 billion in economic development statewide, including developer-committed investments to support disadvantaged communities. The projects will be the largest power generation projects in New York State in over 35 years once they enter operation in 2026, supporting the state’s Climate Leadership and Community Protection Act (Climate Act) goal to develop 9 GW of offshore wind energy by 2035.

“I promised to make New York a place for the renewable energy industry to do business, and we are delivering on that promise,” Hochul said. “Offshore wind is foundational to our fight against climate change, and these awards demonstrate our national leadership to advance a zero-emissions electric grid at the best value to New Yorkers.”

These two projects, totaling more than 1.7 GW of renewable energy, will provide enough power for 1 million New York homes and deliver approximately 10% of New York City and Long Island’s electricity needs.

“Today’s announcement is the latest step forward as President Biden continues to deliver historic progress on growing the American offshore wind industry, creating good-paying union jobs, and advancing our ambitious climate and clean energy goals,” said Mary Frances Repko, White House deputy national climate advisor. “With support from the president’s Investing in America agenda, these projects will benefit local workers and communities and strengthen a domestic manufacturing base that stretches across the nation. The Biden-Harris Administration will continue to partner with leaders like Gov. Hochul and other governors across the country to build on unprecedented offshore wind efforts – from permitting projects and leasing wind energy areas, to catalyzing a Made in America supply chain, to expanding port and transmission infrastructure.”

Empire Wind I and Sunrise Wind, two under development offshore wind projects, have already completed most federal and state permitting milestones. Both projects are expected to ramp up construction activity this year. Today’s awards are conditional on successful contract execution. In addition, the Community Offshore Wind 2 project has been waitlisted and may be considered for award and contract negotiation at a later date.

The two projects have spurred other economic activity in the region. Construction and operation of the South Brooklyn Marine Terminal assembly and staging port will begin, creating more than 400 construction jobs. The port will occupy a currently inactive tract of 70 waterfront acres in a disadvantaged community.

More than $80 million will be invested into construction and manufacturing of foundation components at the Port of Coeymans; investements totaling $135 million will be made to electric grid infrastructure on Long Island and $200 million in transmission related investments, backed by a Project Labor Agreement with Long Island skilled tradespeople, including heavy equipment operators, electricians and line workers.

Aligned with Climate Act goals, over $1 billion is expected to be invested in disadvantaged communities, $117 million supporting minority, women-owned and veteran-owned businesses, and over $43 million in workforce development investments.

“I am incredibly proud of the NYSERDA team’s demonstrated ability to rapidly respond to market challenges by expertly executing on this expedited solicitation in a manner that ensured competition, a robust evaluation process and yielded a cost that is competitive in today’s market,” said Doreen M. Harris, president and CEO of New York State Energy Research and Development Authority. “We are excited to see Equinor and Orsted and Eversource step up now and get these projects energized in the near term. Today’s announcement further demonstrates Governor Hochul’s leadership in renewable energy and New York State’s commitment to partnering with companies who will deliver clean offshore wind power, create jobs for future generations and develop critical port infrastructure at the same time.”

Empire Wind 1 and Sunrise Wind were previously awarded by NYSERDA in 2019 as part of NYSERDA’s first offshore wind solicitation. As part of these awards, the projects will be held to new contract provisions that bring additional benefits to the State, including $32 million committed to community-focused investments in New York’s disadvantaged communities and $16.5 million towards wildlife and fisheries monitoring; commitments to purchasing a minimum of $188 million of U.S. iron and steel, supporting U.S. manufacturing and the New York Buy American Act.

The average bill impact for customers over the life of these projects under these awards will be approximately 2%, or about $2.09 per month. The weighted average all-in development cost of the awarded offshore wind projects over the life of the contracts is $150.15 per MWh.

“Gov. Hochul and NYSERDA have once again shown their commitment to offshore wind and we are grateful that Empire Wind has been selected to help lead the way,” said Molly Morris, Equinor Renewables Americas president. “This is an advanced project that will soon deliver reliable renewable power to hundreds of thousands of New Yorkers, with environmental and economic benefits that begin at the local level and will extend across the state.”

Building on these awards and consistent with New York’s 10-Point Action Plan, NYSERDA expects to announce awards for Tier-1 land-based renewables projects in April 2024. New York’s 10-Point Action Plan serves to reinforce the State’s dedication to clean energy development, sustainability, and economic growth and supports the State’s progress towards achieving the Climate Act goals, including obtaining 70% of the state’s electricity from renewable sources by 2030.

“With these provisional awards in New York’s fourth offshore wind solicitation, we can see all the pieces of the state’s offshore wind economy coming together, and we’re incredibly proud of the role Sunrise Wind will play in this new American clean energy industry,” said David Harby, Ørsted Group EVP and CEO of Americas.

News item from NYSERDA

Filed Under: News, Offshore wind, Projects