- New York officials had selected the Empire Wind 1 project and the Sunrise Wind facility.
- Once completed, the projects will produce enough electricity to power 1 million homes.
New York officials said it had selected the Empire Wind 1 project from Norway’s Equinor and the Sunrise Wind facility developed by Denmark’s Orsted and US power provider Eversource.
The official stated that the conditional contracts awarded to the two firms are for purchasing electricity from two proposed offshore wind projects under a program meant to support the embattled industry and keep the state’s ambitious clean energy goals on track.
Once completed, the projects will produce enough electricity to power 1 million homes, the state said. They will be the state’s most significant electricity generation projects in nearly four decades.
The competitively selected projects will enter into contracts to sell Offshore Wind Renewable Energy Certificates (ORECs) to NYSERDA on behalf of New York’s electricity ratepayers statewide.
New York State Energy Research and Development Authority (NYSERDA) solicitation is being monitored because it allowed companies to exit old contracts and re-offer projects at higher prices.
Both Equinor and Orsted took significant financial hits on their US offshore wind portfolios and sought to charge customers more for power produced by their projects. New York did not grant that request but allowed them to rebid.
Offshore wind developers have warned that proposed facilities cannot be built profitably because of rocketing construction costs, higher interest rates and supply chain snags.
Governor Kathy Hochul said in a statement, “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.”
New York aims to develop 9,000 megawatts of offshore wind by 2035. Sunrise Wind and Empire Wind 1 will contribute 1,700 MW toward that target.