Listen to this articleNew York “conditionally awarded” two 25-year contracts for updated offshore wind projects.
On Long Island, Ørsted and Eversource were selected to negotiate the Sunrise Wind offshore wind farm off Smith Point. This conditional award brings the 924-megawatt project a step closer to development.
And in Brooklyn, Equinor’s Empire Wind 1 was selected, pending an agreement on final terms with the New York State Energy Research and Development Authority (NYSERDA). This project would deliver 810 megawatts of power and the construction of an offshore wind port facility at the South Brooklyn Marine Terminal.
“I promised to make New York a place for the renewable energy industry to do business, and we are delivering on that promise,” Gov. Kathy Hochul said in a written statement. “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.”
The awards are expected to bring the state closer to its Climate Act Goal to develop 9,000 megawatts of offshore wind energy by 2035. Advocates say the initiative will bring investments into the region, and 800 construction jobs.
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, according to the state. The weighted average all-in development cost of the awarded offshore wind projects over the life of the contracts is $150.15 per megawatt-hour which is on-par with the latest market prices. Following successful contract execution, NYSERDA payments under these awards will only begin once projects have obtained all required permits and approvals, have been completed and begin delivering clean energy to New York.
“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,” Ørsted Group EVP and CEO Americas David Hardy said, in a written statement. “We thank Governor Hochul and her administration for driving this industry forward at a critical moment to the benefit of current and future New Yorkers. Sunrise Wind is on a path to adding nearly a gigawatt of clean energy capacity to New York’s grid by the end of 2026, while creating jobs and new career paths, investing in local communities, diversifying the regional energy mix, and propelling the state toward its clean energy targets.”
“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,” Equinor Renewables Americas President Molly Morris said in a written statement. “We thank Governor Hochul and NYSERDA for executing on this expedited process and look forward to continued community engagement as we move toward a groundbreaking at the South Brooklyn Marine Terminal this spring.”
