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New York solicitation battle begins

By: Tom Russell 21/10/2020 4C Offshore

General Windfarms

A number of developers have submitted bids to the New York State Energy Research and Development Authority (NYSERDA) in response to the state’s most recent solicitation requesting proposals for up to 2,500 MW of offshore wind.

New York State has a goal to secure 70 percent of its electricity from renewable energy by 2030, and at least 9,000 MW of offshore wind by 2035. The state plans to announce awards for the solicitation during Q4 2020.

Equinor has offered bids including two projects, Empire Wind Phase 2 and Beacon Wind, which is claims have the potential to power more than one million homes and generate more than 3,000 new jobs for New York State. Equinor plans to use the South Brooklyn Marine Terminal for construction activities and its operations and maintenance (O&M) base going forward. The proposals include plans for manufacturing offshore wind components upstate at the Port of Coeymans and the Port of Albany.

Equinor's bid follows the success of Empire Wind Phase 1, an 816 MW winning bid in 2019 that is currently under development.

In September 2020, BP and Equinor announced that they have formed a strategic partnership for offshore wind in the U.S., and that BP will be a 50% non-operating partner in the Empire Wind and Beacon Wind assets on the U.S. East Coast. The transaction is expected to close in early 2021.

“The U.S. offshore wind industry is poised for expansion and we are passionate about creating substantial value in the New York market,” said Siri Espedal Kindem, President Equinor Wind U.S. “These proposals include significant new benefits for New York – from workforce training, economic development, and community benefits – alongside a tremendous amount of homegrown, renewable energy. We look forward to building on our collective success in New York together.”

Ørsted and Eversource submitted a joint proposal to develop Sunrise Wind 2. The submission includes multiple bids with different configurations and a commitment to invest hundreds of millions of dollars into the state economy and create new jobs. The Sunrise Wind 2 proposal includes Port Infrastructure Investment Plans that will support the revitalisation of New York’s critical maritime infrastructure.

Ørsted and Eversource are already developing New York’s first offshore wind farm: South Fork Wind, a 132-megawatt project to serve Long Island. The state selected Sunrise Wind 1, an approximately 880-megawatt offshore wind farm, in a competitive solicitation in 2019 as one of NYSERDA’s inaugural offshore wind farms. All three New York projects will be located more than 30 miles east of Montauk.

Sunrise Wind has also joined with New York’s preeminent transmission developer, Con Edison Transmission, which will support the development of the transmission facilities needed to deliver the offshore wind energy to the electric transmission grid and have the opportunity to acquire certain transmission facilities depending on the configuration selected.

“As the global leader in offshore wind and a proud partner of New York, Ørsted understands the importance of achieving the state's renewable energy goals. We also have the unique opportunity to build a greener economy as the world rebounds from the COVID-19 pandemic,” said Thomas Brostrøm, CEO of Ørsted North America, Offshore. “Our latest plan for New York provides statewide benefits and the potential to boost New York’s green economy as we emerge from COVID-19. We are committed to doing everything we can to make New York’s climate goals a reality, and to further strengthen its economy.”

"Eversource is committed to helping New York reach its ambitious clean energy goals. As the nation’s leading energy efficiency provider with more than 100 years of expertise partnering with Northeastern states to meet their policy goals, Eversource is well-positioned to serve as a catalyst for clean energy in the Northeast," said Joe Nolan, Executive Vice President for Strategy, Customer & Corporate Relations at Eversource. "Sunrise Wind 2 will create good-paying jobs for New York, support economic growth, and further reduce emissions while delivering affordable clean energy to Long Island and the rest of New York. This latest proposal will deepen our commitment to New York State and the offshore wind industry."

The chairman and chief executive officer of Spanish energy giant Iberdrola has confirmed that the company has also tossed its hat into the ring. No further details on the bid have been disclosed.

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New York solicitation battle begins

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