New York Showdown Imminent as Big Names Submit Their Offshore Wind Bids

Contracts & Tenders

January 27, 2023, by Adnan Durakovic

New York’s third competitive offshore wind solicitation has attracted bids from a number of major players including Ørsted and Eversource, Equinor and bp, RWE and National Grid, Invenergy and energyRe, and Rise Light & Power, among others.

In July of 2022, New York’s Governor Kathy Hochul announced New York’s third competitive offshore wind solicitation for a minimum of 2,000 MW of offshore wind.

Ørsted and Eversource have included multiple bids with different configurations in their proposal. The consortium is already developing South Fork Wind, New York’s first offshore wind farm, which broke ground early last year and will be operational with 130 MW in 2023, and Sunrise Wind, a 924 MW project that will deliver energy to New York in late 2025.

”We’re confident this new proposal offers statewide, comprehensive offshore wind solutions and integrated clean energy innovation for New York, a state where we already have two advanced projects and have invested in supply chain development, workforce training and O&M capabilities. This solicitation further demonstrates New York’s leadership in offshore wind energy, and we look forward to the opportunity to build upon our strong track record here,” David Hardy, Group EVP and CEO Americas at Ørsted, said.

Equinor and bp‘s bid, submitted to the New York State Energy Research and Development Authority (NYSERDA), would provide New York with renewable energy from the Beacon Wind 2 lease area located approximately 60 miles off the eastern tip of Long Island.

Capable of producing 1,360 MW of offshore wind energy, Beacon Wind 2 has the potential to power approximately one million New York homes, generate more than USD 11 billion in new economic activity in the state over the project lifecycle, and create thousands of jobs, the partners said.

Power from Beacon Wind 2 would complement the 3.3 GW of potential offshore wind generating capacity for New York State currently under development by Equinor and bp with the Empire Wind 1 and 2, and Beacon Wind 1 projects.

Beacon Wind recently purchased the site of the Astoria Gas Turbines, with the potential to bring offshore wind from Beacon Wind 1 and Beacon Wind 2 directly to New York City, transforming the site into The Astoria Gateway for Renewable Energy.

Equinor and bp’s proposal also includes new manufacturing plants including a facility to produce cable components for offshore wind projects both locally and around the world. Additionally, working with offshore wind turbine manufacturers, Equinor and bp propose to support the establishment of facilities to manufacture wind turbine components, such as blades and nacelles, in New York State.

”Equinor and bp are eager to build on the significant experience gained through our work in New York over the past five years to bring more offshore wind energy to the state,” said Molly Morris, President, Equinor Wind US.

”The commitments and opportunities that we have outlined in this bid are informed by our team’s ongoing efforts to develop offshore wind for the state. Our deep understanding of the workers, communities and economic opportunities related to this new industry allows us to invest in New York where it matters most. There is a tremendous opportunity here to harness the project maturity, efficiencies, and knowledge related to our current work, and we welcome the chance to deepen our work with New York to bring these exciting new initiatives to bear and help the state reach the next level of its renewable energy goals.”

Community Offshore Wind, a joint venture between RWE and National Grid, has submitted a bid to build a 1.3 GW offshore wind farm in response to the solicitation.

The project is expected to create 4,600 jobs and deliver over USD 3 billion in economic benefits to New York, the partners said.

It also comes with agreements with suppliers such as GE to localize both blade and nacelle facilities, and could bring steel fabrication and processing to Orange County.

If the bid is successful, Community Offshore Wind plans to invest in a Staten Island port facility for staging and assembly of wind turbines.

”Community Offshore Wind aims to reestablish New York as an energy manufacturing hub that shifts the supply chain from global to local, while prioritizing disadvantaged communities, local content, and union labor,” said Sam Eaton, CEO, RWE Offshore Holdings.

”The investments included in our proposal enable New Yorkers to step into the benefits promised in the Climate Leadership and Community Protection Act and embrace an equitable clean energy future. As a leading offshore wind developer globally, RWE is proud to partner with National Grid and play a key role in New York’s just transition.”

In February 2022, Community Offshore Wind was successful in acquiring its lease area of roughly 126,000 acres in the New York Bight, the area between Long Island and New Jersey, with a potential capacity of 3 GW of offshore wind.

Leading Light Wind, a joint venture between Invenergy and energyRE, has proposed delivering a 2.1 GW project in response to the solicitation.

According to the partners, the proposed project would support tens of thousands of jobs over its operational life and represent up to USD 13.3 billion in economic benefits for New York, including critical offshore wind infrastructure and supply chain investments.

”Leading Light Wind is charting a course for New York’s clean energy future, one that is led by American innovation,” said Michael Polsky, Founder and CEO at Invenergy.

”As the only American-led offshore wind project in the New York Bight, Leading Light Wind has an unmatched commitment to advancing a domestic offshore wind industry that secures American competitiveness in the global market, delivers a just energy transition, and builds new opportunities for New Yorkers.”

Leading Light Wind signed a Memorandum of Understanding (MOU) with North America’s Building Trades Unions (NABTU) to ensure the project is built by New York union construction workers. The MOU covers all aspects of construction – from supply chain and port construction to offshore construction.

NYSERDA is expected to announce the winners of this solicitation in early Spring 2023.