New York State Vitality Analysis and Improvement Authority (NYSERDA) has chosen Equinor’s Empire Wind 1 and Ørsted and Eversource’s Dawn Wind tasks within the state’s fourth offshore wind solicitation. Each tasks secured agreements with the state earlier and re-bid on this procurement spherical to barter new 25-year contracts.
NYSERDA and the builders of the chosen tasks will now negotiate Offshore Wind Renewable Vitality Certificates (OREC) Buy and Sale Agreements, with contract execution anticipated within the second quarter of this 12 months.
NYSERDA launched the fourth, expedited offshore wind solicitation in December 2023. Tasks with current agreements had been additionally in a position to bid because the request for proposals (RFP) didn’t require tasks with current Offshore Renewable Vitality Credit score (OREC) contracts to terminate them. Nonetheless, the foundations require cancelling an current OREC settlement if a such challenge fails to win on this solicitation.
For Equinor, the win comes shortly after its Empire Wind tasks acquired federal approval. Whereas the corporate has progressed the 816 MW Empire Wind 1 to close development and re-bid the wind farm within the state procurement, Equinor terminated the OREC settlement for Empire Wind 2 originally of this 12 months and mentioned the transfer repositioned the challenge to “proceed growth in anticipation of recent offtake alternatives”.
In a press launch on 29 February, the developer highlighted Empire Wind 1 was a shovel-ready challenge.
Equinor expects to take a closing funding resolution on Empire Wind 1 in mid-2024 and plans to make use of challenge financing, with monetary shut anticipated by the tip of 2024. The corporate additionally revealed on 29 February an intention to usher in a companion within the challenge.
As soon as the challenge reaches monetary shut, it would transfer into the development stage. The primary energy from Empire Wind 1 is anticipated in 2026.
A key element of the 816 MW challenge is the transformation of the South Brooklyn Marine Terminal (SBMT) in Sundown Park, the place Equinor will construct Empire Wind’s operations and upkeep (O&M) facility, with development scheduled to start this Spring.
By being chosen in New York’s fourth offshore wind procurement spherical, Ørsted and Eversource Vitality’s 924 MW Dawn Wind offshore wind farm is now on its strategy to turning into absolutely owned by Ørsted.
This follows the settlement the 2 companions signed originally of this 12 months, underneath which Ørsted will purchase Eversource’s 50 per cent share of the offshore wind farm. One of many situations for the acquisition to maneuver ahead is Dawn Wind being chosen in New York’s fourth solicitation for offshore wind capability, which has now been fulfilled.
The takeover remains to be topic to the signing of an OREC contract with NYSERDA, finalisation of acquisition agreements, receipt of the development and operations plan (COP), and related regulatory approvals.
Ørsted additionally notes that its New York challenge that gained on this spherical is ready-to-build, in addition to that, along with Eversource, the corporate submitted a brand new proposal for Dawn Wind in response to New York’s newest offshore wind solicitation, re-bidding an up to date challenge.
Dawn Wind submitted a COP in September 2020 and the Bureau of Ocean Vitality Administration (BOEM) began its environmental evaluation the next 12 months. On 11 December 2023, BOEM introduced that the company had accomplished its environmental evaluation of the Dawn Wind challenge and issued the Last Environmental Influence Assertion (EIS).
On 20 December 2023, the developer submitted an up to date COP for Dawn Wind to BOEM. After the environmental evaluation, BOEM will both approve, disapprove, or approve with modifications the proposed actions, the company says on its web site.
Ørsted expects to make the ultimate funding resolution on the 924 MW Dawn Wind challenge within the second quarter of 2024.
The 924 MW offshore wind farm is anticipated to be operational in 2026 and can start the complete scope of development as soon as it has acquired all federal permits, slated for this summer time, in response to the developer.
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