On Thursday, New York Gov. Kathy Hochul (D) said the state had selected the 924-megawatt Sunrise Wind project and the 810-megawatt Empire Wind 1 project in its fourth competitive auction for offshore wind contracts. Developers of both projects had secured long-term agreements to deliver clean electricity to the state in 2019. But they opted to replace those contracts and rebid their offshore wind projects in order to secure more favorable terms amid dramatically different economic conditions.
“Offshore wind is foundational to our fight against climate change,” Hochul said in a statement. “These awards demonstrate our national leadership to advance a zero-emissions electric grid at the best value to New Yorkers.”
New York is aiming to build 9,000 megawatts (9 gigawatts) of offshore wind capacity by 2035 — the most ambitious near-term goal in the country, and enough to meet about 30 percent of the state’s total electricity needs. The plan is key to the state’s goal of achieving a carbon-free grid by 2040. Nationwide, the Biden administration has set a goal of installing 30 GW of offshore wind by the end of this decade.
As of February, the United States has installed over 240 megawatts of offshore wind capacity off the coasts of New York, Massachusetts, Rhode Island and Virginia — up from just 42 megawatts a year ago.
However, the offshore wind targets of New York and the nation were all thrown into jeopardy last year after financial hardships and logistical challenges hammered project developers. Supply-chain constraints driven by the pandemic, plus rising material costs, higher interest rates and permitting delays, all made it more expensive and less profitable to develop massive, complex offshore wind projects.
The developers most affected by the tumultuous conditions were the ones that had already signed offtake agreements with utilities or public agencies, as was the case for Ørsted and Eversource, which are building the Sunrise Wind farm, and Equinor, which is developing Empire Wind 1.
On Thursday, New York Gov. Kathy Hochul (D) said the state had selected the 924-megawatt Sunrise Wind project and the 810-megawatt Empire Wind 1 project in its fourth competitive auction for offshore wind contracts. Developers of both projects had secured long-term agreements to deliver clean electricity to the state in 2019. But they opted to replace those contracts and rebid their offshore wind projects in order to secure more favorable terms amid dramatically different economic conditions. “Offshore win
Source: Two major New York offshore wind projects are back on… | Canary Media
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