Ørsted, Eversource officially take part in NY offshore wind tender

Block Island wind farm

February 15 (Renewables Now) - Denmark’s Ørsted A/S (CPH:ORSTED) and New England utility Eversource Energy (NYSE:ES) confirmed they have submitted a joint proposal to build an offshore wind park as part of New York state’s 800-MW solicitation.

Thursday was the deadline for bids in the New York State Offshore Wind Power Procurement. Ørsted and Eversource are taking part with their so-called Sunrise Wind project, proposed to be located more than 30 miles east of Montauk Point, where, the developers say, it will be virtually unnoticeable to Long Island residents.

The partners have signed a Memorandum of Understanding (MoU) with local transmission developer Con Edison Transmission, which will support the development of the required transmission facilities. Ørsted and Eversource will have an eventual right to acquire the offshore portion of the transmission system, according to a press statement.

The New York State Energy Research and Development Authority (NYSERDA) seeks to award 25-year power purchase agreements (PPA) to projects of between 200 MW and 800 MW, while it could contract even more if “sufficiently attractive proposals are received.”  The successful candidates will be announced in the spring.

It has already been confirmed that Norwegian energy major Equinor ASA (NYSE:EQNR) is participating with its Empire Wind lease site, while Vineyard Wind LLC has responded with a scheme called Liberty Wind and three options of 400 MW, 800 MW and 1,200 MW.

Ørsted is the owner of the US’ only operating offshore wind farm -- the 30-MW Block Island plant off Rhode Island that entered into service in December 2016. It was developed by Deepwater Wind, which was formally acquired by Ørsted in November 2018.

Earlier this month, the Danish company announced it is selling a 50% stake in a portfolio of offshore wind assets to Eversource for about USD 225 million (EUR 199.5m), including the 704-MW Revolution Wind and the 130-MW South Fork projects, as well as interests in two undeveloped New England lease areas that can potentially add over 1 GW of offshore wind capacity.

(USD 1.0 = EUR 0.887)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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