July 19 (Renewables Now) - The 880-MW Sunrise Wind and the 816-MW Empire Wind projects were selected as preferred bidders in New York’s maiden offshore wind competition, securing the right to negotiate offshore wind renewable energy certificates (ORECs) for a period of 25 years.
Governor Andrew Cuomo released the tender results on Thursday, saying the two projects represent a combined economic activity of USD 3.2 billion (EUR 2.8bn) statewide, also bringing significant investment in manufacturing and port facilities.
The Sunrise Wind project was proposed by Denmark’s Ørsted A/S (CPH:ORSTED) and New England utility Eversource Energy (NYSE:ES), through their joint venture Bay State Wind LLC, and will be located 30 miles east of Montauk Point, Long Island. Subject to the contract signing and a final investment decision, the developers expect to have the wind complex up and running in May 2024. Construction works are expected to be initiated in 2022.
Empire Wind, meanwhile, is the project of Norwegian energy major Equinor ASA (NYSE:EQNR), whose plan is to install the wind farm within an 80,000-acre lease in the New York Bight it secured in December 2016. Construction of the wind farm is to be initiated in 2022, with commercial operations targeted for December 2024.
The 800-MW New York State Offshore Wind Power Procurement was opened in November 2018. Through it, the New York State Energy Research and Development Authority (NYSERDA) sought to award 25-year power purchase agreements (PPA) to projects of between 200 MW and 800 MW, while it said at the time it could contract even more if “sufficiently attractive proposals” were received.
The tender supports the state’s goal of sourcing 50% of its electricity from renewables by 2030 and having 9 GW of offshore wind capacity by 2035.
(USD 1.0 = EUR 0.888)