New York state has awarded 2.5 gigawatts of offshore wind initiatives to builders Equinor and BP, the biggest but within the state’s large offshore wind buildout and one of many largest single U.S. renewable power contracts but awarded.
Wednesday’s award, introduced by New York Gov. Andrew Cuomo throughout his State of the State tackle, arms the whole thing of the state’s second large-scale solicitation to the 2 European oil majors which have joined forces in focusing on the rising Japanese U.S. offshore wind alternative.
The initiatives, which add as much as $eight.9 billion in funding, embody 1,230 MW from the Beacon Wind 1 venture off the Massachusetts coast and 1,260 megawatts from the Empire Wind 2 venture, an enlargement of the 816 MW Empire Wind 1 venture Equinor is already constructing off the Lengthy Island coast underneath the state’s first solicitation, in 2019.
The awards, which nonetheless should be finalized in a purchase order and sale settlement with the New York State Power Analysis and Improvement Authority (NYSERDA), deliver Equinor’s whole offshore wind plans for the state to three.three gigawatts. That’s greater than one-third of the 9 gigawatts of offshore wind by 2035 that New York is focusing on, the very best but introduced in a area that’s seeing a number of states jostling for the title.
Wednesday’s information places Equinor and strategic associate BP, which invested $1.1 billion in Empire Wind final yr, forward of rivals within the race to provide New York with the carbon-free power that underneath state regulation should represent 70 % of its technology by 2030 and 100 % by 2040. Denmark’s Ørsted received a part of New York’s first 1.7 GW solicitation in 2019 with its plans for the 880 MW Dawn Wind venture to be constructed with utility associate Eversource Power.
Offshore wind targets, investments alongside the East Coast
The announcement additionally boosts New York’s race with a number of East Coast states to website offshore wind manufacturing and port services inside their borders. As a part of Wednesday’s award, Norway’s Equinor and UK-based BP will associate with New York state to transform the South Brooklyn Marine Terminal and the Port of Albany into large-scale offshore wind manufacturing hubs.
One other three port upgrades are deliberate underneath Cuomo’s new power plan — rising use of the Hudson River Port of Coeymans for turbine basis manufacturing, and increasing operations and upkeep at Port Jefferson and Port of Montauk Harbor in Lengthy Island.
The state has pledged to take a position $200 million to a complete projected funding of $664 million in these initiatives, to seize the roles and financial growth to circulation from what wind business teams say may add as much as $70 billion of funding that in U.S. offshore wind initiatives by 2030.
Different states are gearing up with offshore wind deployment and industrial growth plans of their very own. Virginia utility Dominion Power plans to deploy 2.6 GW of offshore wind by 2026, and the state is working with a consortium together with Maryland and North Carolina to draw turbine manufacturing services and investments in ports and ships wanted to put in them in ocean waters.
New Jersey has set offshore wind targets of three GW by 2030 and 7.5 GW by 2035, and awarded its first contract final yr for the 1.1-gigawatt Ocean Wind venture. Gov. Phil Murphy has introduced plans for a $400 million offshore wind port facility.
And Massachusetts, the offtaker of the 800 MW of energy to come back from Winery Wind venture, the nation’s first commercial-scale U.S. offshore wind farm being developed by Iberdrola’s Avangrid utility and Copenhagen Infrastructure Companions, is awaiting Gov. Charlie Baker’s signature on a invoice that will improve its offshore wind targets from three.2 GW to five.6 GW by 2030.
New York to develop transmission, photo voltaic and power storage
Gov. Cuomo additionally pledged a bunch of investments into New York’s broader clear power transformation in Wednesday’s speech, together with a extra strong transmission system to hold clear energy from upstate sources to downstate load facilities nonetheless largely reliant on fossil fuel-fired energy crops.
These embody a $2 billion “inexperienced power superhighway” plan to construct 250 miles of transmission, and a request for proposals for initiatives to hyperlink upstate and Canadian wind and hydropower to New York Metropolis, with a projected $5 billion in private and non-private funding.
Cuomo’s “Reimagine, Rebuild, Renew” agenda additionally calls for reinforcing the state’s newest spherical of onshore wind and photo voltaic initiatives by constructing 23 new photo voltaic services and a hydroelectric venture in 2021; persevering with to help the development of battery power storage initiatives to steadiness its rising share of intermittent renewable power; and spend money on workforce coaching and constructing electrification.