New York Finalises Contracts for 1700 MW Offshore Wind Projects

NYSERDA has finalised contracts with Equinor and Sunrise Wind (Ørtsed and Eversource) to deliver 1700 MW of offshore wind energy to New York.

Governor of New York, Andrew M. Cuomo has announced that the New York State Energy Research and Development Authority (NYSERDA) has finalised contracts with Equinor Wind US for its 816 MW – Empire Wind Project and Sunrise Wind LLC (a joint venture of Ørsted A/S and Eversource Energy) for its 880 MW – “Sunrise Wind” offshore project to deliver 1700 MW of clean, affordable renewable energy to New Yorkers.

As the largest procurement for offshore wind in the nation’s history, the announcement advances Governor Cuomo’s nation-leading Green New Deal goal to develop 9,000 MW of offshore wind by 2035 and position New York State as the regional hub of this rapidly growing industry in the United States.

“New Yorkers know all too well the devastating impacts of climate change and the catastrophic consequences if we do not act urgently,” Governor Cuomo said. “By finalising the contract awards for the nation’s largest offshore wind procurement, we are realising the positive impacts these projects will have on the environment while diversifying our economy and bringing significant economic benefits to the Empire State.”

NYSERDA also concurrently submitted its comprehensive filing, “Launching New York’s Offshore Wind Industry: Phase 1 Report”. The report documents the successful results of New York’s first large-scale offshore wind solicitation with a combined total capacity of nearly 1,700 megawatts and provides important details about these highest scoring projects.

The Report’s key findings include:

Unprecedented competition: The first procurement garnered the most competitive market response to date among all US state offshore wind solicitations. With four developers submitting a total of 18 proposals.

Cost-effectiveness: The Empire Wind and Sunrise Wind projects have an average all-in development cost of USD 83.36 per MWh (2018 dollars) with an expected average OREC cost of USD 25.14 per MWh. The average bill impact for residential customers will be less than a dollar per month per customer – approximately USD 0.73.

Innovative Contracting Structure: The contracts utilise an innovative Index OREC contracting structure where payments rise and fall inversely to a composite average of the state’s energy and capacity market price markets, which do not reflect actual project revenues. This structure provides protection for ratepayers against volatility in utility bills and projects in project revenue over the contracts’ 25-year lifetime.

Kickstarting a Powerhouse Clean Energy Industry in New York: The awarded projects will spur a clean energy industry with USD 3.2 billion in combined economic impacts to upstate, downstate, and Long Island, more than USD 85 million investments in long-term port facilities and cutting-edge technologies and are expected to deliver over 1,600 direct new jobs in project development, component manufacturing, installation, and operations and maintenance.

Alicia Barton, President and CEO, NYSERDA said that by every measure, the state’s first offshore wind procurement was a resounding success and the execution of contracts signifies a major milestone in its nation-leading pursuit to deliver clean, locally-produced power to millions of New York homes and businesses.

“These projects, which represent the largest ever renewable energy procurement made by a state in U.S. history, will deliver tremendous economic benefits and provide jobs to thousands of New Yorkers.”