New York State approves two offshore wind projects

New York State has conditionally awarded two offshore wind projects from its fourth offshore wind solicitation.

One of the awards is an 810-megawatt project, Empire Wind 1, developed by Equinor. The other is Sunrise Wind, a planned 924-megawatt project, developed by Orsted and Eversource.

Once they begin commercial operation in 2026, the projects, totaling over 1,700 megawatts of clean energy, will be the largest power generation projects in New York State in over 35 years. They will also help draw the state closer to its goal to develop 9,000 megawatts 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,” New York Gov. Kathy 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.”

Empire Wind I, located 15 miles off New York’s shore, and Sunrise Wind, located more than 30 miles east of the eastern point of Long Island, have already completed most federal and state permitting milestones. Both projects are expected to ramp up construction activity this year, pending successful contract execution.

Combined, the two projects will reduce greenhouse gas emissions by over three million metric tons annually, the equivalent annual emissions of over 740,000 cars. Also, they will create more than 800 construction jobs and invest $2 billion in near-term enhanced economic development statewide. Further, they will usher in the construction and operation of the South Brooklyn Marine Terminal assembly and staging port, jump-starting over 400 construction jobs this year to transform the currently inactive 70-acre waterfront site.

Empire Wind 1 and Sunrise Wind were previously awarded by the New York State Energy Research and Development Authority (NYSERDA) in 2019 as part of its 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.

“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,” NYSERDA President and CEO Doreen Harris said.

The average bill impact for customers over the life of these projects will be approximately two percent, 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 megawatt-hour.

NYSERDA expects to announce awards for Tier-1 land-based renewables projects in April 2024. In addition, the Community Offshore Wind 2 project has been waitlisted and may be considered for award and contract negotiation at a later date.