Offshore

New York’s latest offshore wind solicitation attracts big bidders

New York’s latest offshore wind solicitation attracts big bidders

New York’s fourth offshore wind solicitation has garnered six bids. So far, we know details about half of those projects- proposals coming from Equinor, Ørsted and Eversource, and RWE and National Grid Ventures.

Not all of the proposals have been publicly released yet, but bookmark this page because the New York State Energy Research and Development Authority (NYSERDA) plans to release public versions of all submitted proposals by Feb. 2. Here’s what we know so about the proposed ventures:

Equinor – Empire Wind 1

Already several years into development, the 810 MW Empire Wind 1 expects to deliver its first power by 2026, if chosen by NYSERDA. The project aims to transform the South Brooklyn Marine Terminal (SBMT) into a hub for offshore wind.

The Empire Wind 1 bid into the NY4 solicitation follows the announcement of a swap transaction between Equinor and BP under which Equinor, subject to certain conditions and regulatory approval, will take full ownership of the Empire Wind lease and associated projects, including SBMT, where construction is expected to begin in the first half of this year. BP will take full ownership of Beacon Wind and its assets.

SBMT Rendering (Photo: Business Wire)

Earlier this month, Empire Wind 2 developers Equinor and BP agreed to cancel its OREC agreement as part of a strategic reset. They say this arrangement reflects changed economic circumstances on an industry-wide scale and repositions an “already mature” project to continue development under a new agreement.

Ørsted and Eversource – Updated Sunrise Wind

Joint venture partners Ørsted and Eversource submitted a new proposal for Sunrise Wind in response to New York’s latest offshore wind solicitation, re-bidding an updated project that could deliver up to 924 MW. Sunrise Wind is expected to be completed in 2026, the companies believe.

The firms say the Sunrise Wind design has been reviewed and accepted by all relevant state agencies, and the project has secured all major supplier and project labor agreements to commence work if awarded the contract. Final federal permits are expected this summer.

RWE and National Grid Ventures – Community Offshore Wind

Community Offshore Wind, a proposed 1.3 GW project from RWE and National Grid Ventures, also submitted its proposal to NYSERDA. The project would develop offshore wind on the largest parcel in the New York Bight with the potential to host 3 GW of capacity, and it is expected to be operational by 2030.

Many renewable energy sectors continued to grow in 2023, but it was a rough year for U.S. offshore wind. Just days into 2024, BP and Equinor announced the termination of Empire Wind 2.

Renewable Energy World is tracking U.S. offshore wind cancellations as they are announced – see our list of the projects that met an unfortunate fate.

Common causes of cancellations include inflation and supply chain disruptions, caused in large part by the war in Ukraine. Developers often expressed openness to continuing projects under offtake agreements, but that sentiment seldom led to survival.

If a wind project you love is in trouble, please drop us a line if you want to talk about it.

This article will be updated as more proposals are announced.