NY - New York backs offshore wind big time: Hochul agrees largest US procurement
After weeks of uncertainty and likely project cancellations due to the effect of inflation on earlier contracts, New York State has reaffirmed its commitment to offshore wind with the largest state-level investment in renewable energy in US history
Days after the New York State Public Service Commission (PSC) denied petitions filed by offshore wind developers seeking billions of dollars in additional funding for four offshore wind projects, Governor Kathy Hochul has announced that a trio of offshore wind projects with a combined capacity of in excess of 4.0 GW have been awarded conditional contracts in the state’s latest solicitation.
The projects include: Attentive Energy One (1,404 MW) developed by TotalEnergies, Rise Light & Power and Corio Generation; Community Offshore Wind (1,314 MW) developed by RWE Offshore Renewables and National Grid Ventures; and Excelsior Wind (1,314 MW) developed by Vineyard Offshore (Copenhagen Infrastructure Partners).
4.0 GW of capacity will help New York State make significant progress on its Climate Act mandate to secure 70% of its electricity from renewable energy by 2030 and at least 9.0 GW of offshore wind by 2035. In addition, the projects will help advance the development of the first blade and nacelle manufacturing facilities in the US, with the state committing US$300M and attracting an additional US$668M in private funding towards the facilities.
“New York continues to set the pace for our nation’s transition to clean energy,” Governor Hochul said. “An investment of this magnitude is about more than just fighting climate change. We are creating good-paying union jobs, improving the reliability of our electric grid, and generating significant benefits in disadvantaged communities. Today, we are taking action to keep New York’s climate goals within reach, demonstrating to the nation how to recalibrate in the wake of global economic challenges while driving us toward a greener and more prosperous future for generations to come.”
US Secretary of Energy Jennifer Granholm said the Department of Energy applauded the significant step that New Yor State has taken towards the building an offshore wind energy industry in the US that would “revitalize domestic manufacturing and coastal economies, while advancing our clean energy future.”
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Read also
NY - Governor Hochul Announces Nation's Largest-Ever State Investment in Renewable Energy is Moving Forward in New York, ny.gov / October 24, 2023
RI - Rhode Island Issues RFP For 1.2 GW of Offshore Wind, First Since CT-RI-MA MOU for Joint Procurements, JD Supra / October 24, 2023
LA - Episode 172: Can Offshore Wind Help Save the Coast? Biz New Orleans / October 24, 2023
MA - Martha's Vineyard News | Vineyard Wind Finishes First Turbine - The Vineyard Gazette, Martha's Vineyard News / October 24, 2023
ME - Draft Gulf of Maine Wind Energy AreaExcludes Right Whale and Lobstering Areas, Maine Audubon / October 24, 2023
CT - Longshoremen Strike Against Ørsted over Training, Jurisdiction at State Pier, CT Examiner / October 23, 2023
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The announcement is the first action taken by the State as part of New York’s 10-point Action Plan, announced recently by Governor Hochul, offering insight into how the Governor’s administration plans to overcome recent macroeconomic and inflationary challenges that have impacted the renewable energy sector. In addition to today’s awards, the state is expected to implement ‘backfill procurements’ in response to the October 12 PSC decision and the expectation that projects that had PPAs without inflation adjustment provisions will have to be rebid.
In addition to providing more than 4.0 GW of generating capacity, the projects will bring more than US$15Bn in in-state spending and create more than 4,200 jobs across Long Island, New York City and the Capital Region over the 25-year lifespan of the projects.
The projects employ a mix of flexible and innovative transmission designs, including a reduced footprint in transmitting energy from offshore wind projects to New York City through high voltage direct current and adaptable ‘meshed ready” offshore electrical substations.
Responding to the announcement, Business Network for Offshore Wind vice president of supply chain development and research Ross Gould said, “New York took an important step toward getting the state’s offshore wind industry back on track today with a colossal commitment to three new projects generating over 4 GW of offshore wind energy.
“By going big and bold, the state secured critical new supply chain investments that will help anchor the entire US market, as well as bring thousands of new jobs to the Empire State.
“It is no secret that New York’s clean energy and offshore wind goals are in doubt after the state’s recent decisions threw the market into uncertainty. We encourage the state to fulfil its Action Plan by finding paths forward for previously awarded projects and stabilizing the state’s offshore wind industry.”
The trio projects are expected to enter commercial operation in 2030.
