Written by
Nick Blenkey
New York Gov. Kathy Hochul: “ “Offshore wind is foundational to our battle towards local weather change.”
New York Gov. Kathy Hochul seems to have notched up two extra successes in her efforts to get New York State offshore wind again on observe. At this time she introduced that the state has conditionally awarded two offshore wind tasks from its fourth offshore wind solicitation: Empire Wind 1, (developed by Equinor) and Dawn Wind (developed by Ørsted and Eversource).
“I promised to make New York a spot for the renewable power trade to do enterprise, and we’re delivering on that promise,” Governor Hochul mentioned. “Offshore wind is foundational to our battle towards local weather change, and these awards display our nationwide management to advance a zero-emissions electrical grid at one of the best worth to New Yorkers.”
Each these tasks had beforehand been awarded contracts by NYSERDA (New York State Vitality Analysis and Growth Authority) in 2019, however had been put doubtful when, final October, the New York State Public Service Fee denied petitions that sought to deal with inflationary pressures on venture economics by means of adjustment to Renewable Vitality Credit score (REC) and Offshore Wind REC (OREC) buy and gross sales agreements entered with NYSERDA.
Beneath the new contracts, says Gov. Hochul’s workplace, the tasks shall be held to new contract provisions that carry further advantages to the state, together with:
- New financial profit commitments above what was initially contracted, together with $32 million dedicated to community-focused investments in New York’s deprived communities and $16.5 million in direction of wildlife and fisheries monitoring.
- Commitments to buying a minimal of $188 million of U.S. iron and metal, supporting U.S. manufacturing and the New York Purchase American Act.
- Necessities for Labor Peace Agreements for operations and upkeep companies.
- The common invoice affect for purchasers over the life of those tasks below these awards shall be roughly two %, or about $2.09 monthly. The weighted common all-in improvement price of the awarded offshore wind tasks over the lifetime of the contracts is $150.15 per megawatt-hour which is on-par with the most recent market costs.
- Following profitable contract execution, NYSERDA funds below these awards will solely start as soon as tasks have obtained all required permits and approvals, have been accomplished and start delivering clear power to New York.
As mature tasks, Empire Wind I, situated 15 miles off New York’s shore, and Dawn Wind, situated greater than 30 miles east of the japanese level of Lengthy Island, have already accomplished most federal and state allowing milestones, together with Empire Wind I receiving last approval of their Development and Operations plan from the Bureau of Ocean Vitality Administration (BOEM) final week. Each tasks are anticipated to ramp up building exercise this 12 months.
That $150.15 per megawatt-hour appears to have made the builders joyful sufficient,
“Governor Hochul and NYSERDA have as soon as once more proven their dedication to offshore wind and we’re grateful that Empire Wind has been chosen to assist cleared the path,” mentioned Equinor Renewables Americas president Molly Morris. “That is a sophisticated venture that can quickly ship dependable renewable energy to a whole bunch of 1000’s of New Yorkers, with environmental and financial advantages that start on the native stage and can lengthen throughout the state. We thank Governor Hochul and NYSERDA for executing on this expedited course of and sit up for continued neighborhood engagement as we transfer towards a groundbreaking on the South Brooklyn Marine Terminal this spring.”
Ørsted Group EVP and CEO Americas David Hardy mentioned, “With these provisional awards in New York’s fourth offshore wind solicitation, we are able to see all of the items of the state’s offshore wind economic system coming collectively, and we’re extremely pleased with the position Dawn Wind will play on this new American clear power trade. We thank Governor Hochul and her administration for driving this trade ahead at a important second to the advantage of present and future New Yorkers. Dawn Wind is on a path to including practically a gigawatt of fresh power capability to New York’s grid by the top of 2026, whereas creating jobs and new profession paths, investing in native communities, diversifying the regional power combine, and propelling the state towards its clear power targets.”
