Offshore wind projects in New York State will be the most significant power generation projects in over 35 years

This week, Governor Hochul of New York announced the completion of new agreements for two offshore wind projects: Empire Wind 1, a planned 810-megawatt project developed by Equinor, and Sunrise Wind, a planned 924-megawatt project developed by Ørsted and Eversource. These contracts were awarded as part of New York`s fourth offshore wind solicitation. The combined capacity of the two offshore wind projects is more than 1,700 megawatts. These projects will generate sufficient clean energy to supply electricity to more than one million homes in New York. Furthermore, once these projects become operational in 2026, they will be the largest power generation initiatives in New York State in over 35 years. The announcement is a component of New York`s 10-Point Action Plan aimed at bolstering the expanding large-scale renewable energy sector. It signifies a step forward in the State`s pursuit of the Climate Leadership and Community Protection Act (Climate Act) objective to establish 9,000 megawatts of offshore wind energy by 2035.

"Governor Hochul stated that New York is at the forefront of developing the clean energy sector, generating well-compensated employment opportunities, and making progress towards our climate objectives." "Offshore wind plays a crucial role in our strategy to combat the climate crisis and create a sustainable future for New York. Our investments are aimed at constructing a robust and environmentally-friendly energy infrastructure that will support the well-being and prosperity of future generations."

The projects that are chosen through a competitive process will generate over 800 construction jobs that provide enough income to support families in the short term. Additionally, these projects will contribute $2 billion to improve economic development throughout the entire state, including investments made by developers to support communities that face disadvantages. In addition to fulfilling the projects` contractual requirements, Empire Wind 1 and Sunrise Wind are projected to generate approximately $6 billion in economic benefits for the entire state over the course of 25 years.

Doreen M. Harris, President and CEO of the New York State Energy Research and Development Authority, stated that these projects will be the largest power generating initiatives in the state in more than three decades. Once completed, they will represent a significant milestone in New York`s shift towards a clean energy economy. The attainment of a zero-emissions electric system will yield substantial economic advantages, enhance public health, and ensure reliability for all residents of New York.

Empire Wind I, situated 15 miles off the coast of New York, and Sunrise Wind, located over 30 miles east of the easternmost point of Long Island, have already achieved significant progress in obtaining the necessary permits from federal and state authorities as established projects. The onshore construction for the Sunrise Wind project, which involves connecting the wind farm to New York`s electric grid, is now in progress. In November 2022, the proposed onshore cable route on Long Island was approved. Last month, the New York State Public Service Commission granted approval to Empire Wind 1`s proposal to link with New York`s electrical grid, marking a significant achievement for the project. The South Brooklyn Marine Terminal is now being renovated to become a cutting-edge port for staging and assembly, as well as a long-term operations and maintenance center for Equinor, the project developer.

The projects Empire Wind 1 and Sunrise Wind were initially granted by NYSERDA in 2019 as a result of NYSERDA`s initial offshore wind request, and were subsequently granted again in 2023. Under the new contracts, the projects will be subject to new conditions that provide significant advantages to the State, such as:

• The revised economic benefit promises exceed the original contract, with an additional $32 million allocated for community-focused projects in disadvantaged areas of New York and $16.5 million designated for wildlife and fisheries monitoring.
• The user has made commitments to purchase at least $188 million worth of iron and steel from the United States, which will help support American manufacturing and comply with the New York Buy American Act. Additionally, there are requirements for Labor Peace Agreements for operations and maintenance services.

With the recent news, the projects are now on track to be completed in the near future, resulting in local investments and improved economic benefits for New York State at competitive prices. Residential customers may expect an average increase of roughly two percent on their bills, which amounts to approximately $2.09 per month during the duration of these initiatives. The contracted offshore wind projects have a weighted average all-in development cost of $150.15 per megawatt-hour during the duration of the contracts, which aligns with the current market values.