New York state has provisionally awarded contracts to 1.7GW of new wind capacity developed Orsted and Equinor as part of its fourth auction.
Equinor’s 810MW Empire Wind 1 scheme and Sunrise Wind, a planned 924-MW project developed by Orsted and Eversource were offered conditional awards on Thursday.
Both parties will now enter negotiations over a 25-year offshore wind renewable energy certificate (OREC) agreement.
The New York State Energy Research and Development Authority (NYSERDA) who managed the auction said the projects would create more than 800 construction jobs and see investment of around $2 billion across the state.
The two projects will also be the largest power generation projects in New York State in over 35 years once they enter operation in 2026.
Equinor noted that a key component of its plans for Empire Wind is the development of an operations and maintenance facility at the South Brooklyn Marine Terminal (SBMT) in Sunset Park, which is now set to become the state’s first purpose-built offshore wind staging and port facility.
Onshore construction at SBMT is scheduled to begin this spring. First power from Empire Wind 1 is expected in 2026.
“This is a promising new beginning for Empire Wind and we’re ready to get started,” said Molly Morris, president of Equinor Renewables America.
“We commend the Hochul Administration and NYSERDA for their strong commitment to offshore wind. Now it’s time to deliver a major renewable energy project that will power half a million homes and generate thousands of jobs. Empire Wind 1 will create value for New Yorkers and for investors for years to come. We have a highly experienced organization in place and will continue to engage closely with the community as we prepare to break ground at SBMT.”
Ørsted and Eversource said the price per MWh for power from their Sunrise Wind will be made public when negotiations have finalised. When a contract is signed, it will replace the existing OREC agreement, which was awarded to Sunrise Wind in 2019.
NYSERDA said the weighted average development cost of the projects over the life of the two contracts is $150.15 per MWh, on-par with the latest market prices.
Sunrise Wind is expected to be completed in 2026, subject to OREC negotiations, customary state and federal approvals, and to Ørsted’s final investment decision, which is now expected in Q2 2024.
David Hardy, executive vice president and CEO of Americas at Ørsted, says: “New York 4 is testament to Governor Hochul’s leadership on clean energy and the state’s ability to respond nimbly to the unprecedented macroeconomic developments that fundamentally changed the economics of the first wave of US offshore wind projects and threatened the state’s transition to clean energy.
“With today’s award at a bid price level reflecting the current component and financing costs, Sunrise Wind is well positioned to deliver clean energy to New York.
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