Governor Hochul Announces Two Offshore Wind Project Awards, to Deliver Clean Power in 2026

Governor Hochul Announces Two Offshore Wind Project Awards, to Deliver Clean Power in 2026

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Governor Kathy Hochul right this moment introduced the State has conditionally awarded two offshore wind initiatives from its fourth offshore wind solicitation – a deliberate 810-megawatt challenge, Empire Wind 1, (developed by Equinor) and Dawn Wind, a deliberate 924-megawatt challenge (developed by Orsted and Eversource). The competitively chosen initiatives will create greater than 800 near-term family-sustaining building jobs and make investments $2 billion in near-term enhanced financial growth statewide, together with developer-committed investments to assist deprived communities. The initiatives, totaling over 1,700 megawatts of unpolluted power, would be the largest energy technology initiatives in New York State in over 35 years as soon as they enter operation in 2026, and can proceed progress in the direction of achievement of the State’s Local weather Management and Group Safety Act (Local weather Act) purpose to develop 9,000 megawatts of offshore wind power by 2035.

“I promised to make New York a spot for the renewable power business to do enterprise, and we’re delivering on that promise,” Governor Hochul stated. “Offshore wind is foundational to our battle in opposition to local weather change, and these awards show our nationwide management to advance a zero-emissions electrical grid at the very best worth to New Yorkers.”

“In the present day’s announcement is the newest step ahead as President Biden continues to ship historic progress on rising the American offshore wind business, creating good-paying union jobs, and advancing our bold local weather and clear power targets,” stated White Home Deputy Nationwide Local weather Advisor Mary Frances Repko. “With assist from the President’s Investing in America agenda, these initiatives will profit native staff and communities and strengthen a home manufacturing base that stretches throughout the nation. The Biden-Harris Administration will proceed to associate with leaders like Governor Hochul and different governors throughout the nation to construct on unprecedented offshore wind efforts – from allowing initiatives and leasing wind power areas, to catalyzing a Made in America provide chain, to increasing port and transmission infrastructure.”

In the present day’s announcement represents continued motion taken by the State as a part of New York’s 10-point Motion Plan, announced by Governor Hochul in 2023, leading to competitively deciding on over 1,700 megawatts (MW) of unpolluted, domestically produced power which is sufficient to energy a million New York properties and ship roughly 10 % of New York Metropolis and Lengthy Island’s electrical energy wants.

As mature initiatives, Empire Wind I, positioned 15 miles off New York’s shore, and Dawn Wind, positioned greater than 30 miles east of the jap level of Lengthy Island, have already accomplished most federal and state allowing milestones, together with Empire Wind I receiving last approval of their Building and Operations plan from the Bureau of Ocean Power Administration (BOEM) final week. Each initiatives are anticipated to ramp up building exercise this yr whereas driving native investments and enhanced financial advantages to New York State at cost-competitive charges. In the present day’s awards are conditional on profitable contract execution. As well as, the Group Offshore Wind 2 challenge has been waitlisted and could also be thought-about for award and contract negotiation at a later date.

Mixed, Empire Wind 1 and Dawn Wind will:

  • Cut back greenhouse fuel emissions by over three million metric tons yearly, the equal annual emissions of over 740,000 automobiles.
  • Usher within the building and operation of the South Brooklyn Marine Terminal meeting and staging port, jump-starting over 400 building jobs this yr to remodel the at present inactive 70-acre waterfront web site in a deprived group right into a thriving offshore wind port.
  • Make investments greater than $80 million in building and manufacturing related to superior basis elements on the Port of Coeymans.
  • Proceed to make investments totaling $135 million in electrical grid infrastructure on Lengthy Island and $200 million in transmission associated investments, backed by a Undertaking Labor Settlement with Lengthy Island expert tradesmen and girls, together with heavy tools operators, electricians, and line staff.
  • Present public well being advantages ensuing from decreased publicity to dangerous pollution – together with fewer episodes of sickness and untimely dying, fewer days of missed college or work, much less disruption of enterprise, and decrease well being care prices.
  • Ship a number of advantages in keeping with Local weather Act targets, with over $1 billion invested in deprived communities, $117 million supporting minority, women-owned, and veteran-owned companies, and over $43 million in workforce growth investments.

New York State Power Analysis and Improvement Authority President and CEO Doreen M. Harris stated, “I’m extremely pleased with the NYSERDA staff’s demonstrated means to quickly reply to market challenges by expertly executing on this expedited solicitation in a way that ensured competitors, a strong analysis course of and yielded a price that’s aggressive in right this moment’s market. We’re excited to see Equinor and Orsted and Eversource step up now and get these initiatives energized within the close to time period. In the present day’s announcement additional demonstrates Governor Hochul’s management in renewable power and New York State’s dedication to partnering with firms who will ship clear offshore wind energy, create jobs for future generations and develop essential port infrastructure on the identical time.”

Empire Wind 1 and Dawn Wind have been beforehand awarded by NYSERDA in 2019 as a part of NYSERDA’s first offshore wind solicitation. As a part of these awards, the initiatives might be held to new contract provisions that deliver further advantages to the State, together with:

  • New financial profit commitments above what was initially contracted, together with $32 million dedicated to community-focused investments in New York’s deprived communities and $16.5 million in the direction of wildlife and fisheries monitoring.
  • Commitments to buying a minimal of $188 million of U.S. iron and metal, supporting U.S. manufacturing and the New York Purchase American Act.
  • Necessities for Labor Peace Agreements for operations and upkeep providers.

The typical invoice affect for patrons over the life of those initiatives beneath these awards might be roughly two %, or about $2.09 monthly. The weighted common all-in growth price of the awarded offshore wind initiatives over the lifetime of the contracts is $150.15 per megawatt-hour which is on-par with the newest market costs. Following profitable contract execution, NYSERDA funds beneath these awards will solely start as soon as initiatives have obtained all required permits and approvals, have been accomplished and start delivering clear power to New York.

Equinor Renewables Americas President Molly Morris stated, “Governor Hochul and NYSERDA have as soon as once more proven their dedication to offshore wind and we’re grateful that Empire Wind has been chosen to assist cleared the path. That is a complicated challenge that can quickly ship dependable renewable energy to a whole lot of 1000’s of New Yorkers, with environmental and financial advantages that start on the native degree and can prolong throughout the state. We thank Governor Hochul and NYSERDA for executing on this expedited course of and look ahead to continued group engagement as we transfer towards a groundbreaking on the South Brooklyn Marine Terminal this spring.”

Ørsted Group EVP and CEO Americas David Hardy stated, “With these provisional awards in New York’s fourth offshore wind solicitation, we are able to see all of the items of the state’s offshore wind financial system coming collectively, and we’re extremely pleased with the position Dawn Wind will play on this new American clear power business. We thank Governor Hochul and her administration for driving this business ahead at a essential second to the advantage of present and future New Yorkers. Dawn Wind is on a path to including practically a gigawatt of unpolluted power capability to New York’s grid by the top of 2026, whereas creating jobs and new profession paths, investing in native communities, diversifying the regional power combine, and propelling the state towards its clear power targets.”

Constructing on these awards and in line with New York’s 10-Level Motion Plan, NYSERDA expects to announce awards for Tier-1 land-based renewables initiatives in April 2024. New York’s 10-Level Motion Plan serves to bolster the State’s dedication to wash power growth, sustainability, and financial progress and helps the State’s progress in the direction of reaching the Local weather Act targets, together with acquiring 70 % of the State’s electrical energy from renewable sources by 2030.

Public Service Fee Chair Rory M. Christian stated, “I applaud Governor Hochul’s decided drive to make sure New York stays on monitor to fulfill its clear power targets. Initiatives similar to these will create the good-paying, clear power jobs that we might want to assist our financial system lengthy into the longer term.”

State Senator Kevin Parker stated, “In the present day’s announcement reveals New York’s dedication to furthering renewable power initiatives regardless of unexpected challenges. I commend the Governor for her management and am optimistic that New York State will proceed to deal with local weather change, obtain our local weather targets and ship essential advantages to New Yorkers.”

State Senator Pete Harckham stated, “These initiatives characterize the daybreak of a brand new period of alternative for New York, the place clear power initiatives will create 1000’s of fine paying union jobs and energy our properties and companies with considerable clear power whereas ridding our financial system of planet-killing emissions.”

Assemblymember Didi Barrett stated, “The announcement of those two rebidded offshore wind contracts illustrates New York’s dedication to maintain us on tempo to succeed in our 70% by 2030 purpose. These two mature initiatives characterize 10% of the facility wanted in downstate New York and may present sufficient capability to energy a million New York properties, all whereas investing in our communities, creating good paying jobs, and supporting U.S. manufacturing and the New York Purchase American Act.”

Assemblymember Deborah Glick stated, “Shifting to wash, sustainable power, like wind, is important to attain New York’s local weather targets. Empire Wind 1 and Dawn Wind won’t solely usher in over 1,700 megawatts of unpolluted power, however these initiatives will create greater than 800 sustaining jobs and create billions of {dollars} in financial growth, proving that initiatives that save the surroundings can create jobs and develop New York’s financial system. I applaud Governor Hochul’s management in advancing New York’s Local weather Management and Group Safety Act targets on this challenge and past.”

New York State Constructing Trades President Gary LaBarbera stated, “As New York continues to pursue the targets set out by the Local weather Management and Group Safety Act, it’s essential that we push ahead large-scale offshore wind initiatives that increase our clear power infrastructure and create 1000’s of good-paying union careers for hardworking New Yorkers. We applaud management in Albany and NYSERDA for pushing ahead these initiatives off the shores of Lengthy Island and Brooklyn that can propel us to our local weather goals, assist usher in a brand new inexperienced financial system, and uplift our underserved communities. Our tradesmen and tradeswomen look ahead to enjoying a job in pushing these essential initiatives ahead and pursuing the family-sustaining careers and paths to the center class they create.”

New York State AFL-CIO President Mario Cilento stated, “We’re happy that this award contains extra stringent statutory labor requirements due to laws signed by the governor final yr. It will make sure that New York’s clear power future is constructed, operated, maintained, repaired, and manufactured by staff who earn good wages, and luxuriate in the advantages and protections assured by union contracts.”

New York Metropolis Central Labor Council President Vincent Alvarez stated, “The New York Metropolis Central Labor Council, AFL-CIO applauds Governor Hochul and NYSERDA for the vital progress introduced right this moment with the awarding of the most important energy technology initiatives in New York State in over 35 years, and for his or her continued dedication to sturdy labor requirements as we transition to a clear power financial system. The NYC Labor Motion seems to be ahead to persevering with to work collectively to make sure that as we spend money on our renewable power future, addressing local weather change and serving to obtain power independence, we’re additionally creating good union jobs and constructing a robust and resilient financial system for all New Yorkers.”

Lengthy Island Federation of Labor, AFL-CIO President John Durso stated, “The working individuals we characterize are on the entrance strains of the local weather disaster, and right this moment is an efficient day on the entrance strains. Governor Hochul’s management expediting the solicitation course of has stored New York State on monitor to attain 9 GW by 2035 and delivered enhanced financial investments which might be going to maintain Lengthy Islanders working.”

Constructing and Building Trades Council of Nassau and Suffolk Counties President Matthew Aracich stated, “I wish to thank Governor Hochul and NYSERDA for his or her management and exhausting work surrounding New York’s fourth solicitation. The 800 family-sustaining Constructing Trades building jobs that might be created because of this solicitation will actually transfer the financial needle right here on Lengthy Island. The chance offered by the offshore wind business will enable the Constructing Trades to offer our pathway from group member to apprentice to journeyman for years to come back; this pipeline supplies an actual path to the center class for our native residents.”

Alliance for Clear Power NY Interim Govt Director Deb Peck Kelleher stated, “In the present day’s announcement is a win for all New Yorkers. When accomplished, these offshore wind initiatives will make a tangible affect in assembly our state’s local weather and renewable power targets. New Yorkers will breathe simpler with clear electrical energy technology. As a rising business, offshore wind will proceed to be an integral a part of our clear power future.”

Lengthy Island Affiliation President & CEO Matt Cohen stated, “The LIA applauds Governor Hochul and NYSERDA for advancing essential offshore wind initiatives, which is able to deliver transformative financial and clear power advantages to Lengthy Island and New York State. The eyes of the nation are on our area as we proceed to be a pacesetter in creating jobs and provide chain alternatives whereas concurrently combating local weather change in partnership with Ørsted and Equinor.”

New York Offshore Wind Alliance Director Fred Zalcman stated, “The Hochul Administration’s award of a number of advanced-stage OSW initiatives an enormous win for New York’s financial system and surroundings, and firmly anchors New York as a essential hub within the manufacture of challenge elements and port-side building exercise. With right this moment’s announcement, the state has deftly navigated the financial headwinds of the post-COVID international financial system and has decisively put the US offshore wind business on a firmer and extra inclusive footing, whereas defending client pursuits.”

New York League of Conservation Voters President Julie Tighe stated, “The choice of Empire 1 and Dawn Wind – two shovel-ready initiatives that can transfer ahead this yr – isn’t solely a boon for the state’s clear power portfolio, it is going to additionally jumpstart the home renewable power provide chain whereas offering a whole lot of well-paying building jobs, making it a win-win for the surroundings and the financial system. We applaud Governor Hochul for recognizing that there isn’t any extra pressing menace than local weather change and no better want than getting off of fossil fuels and delivering on the state’s clear power guarantees.”

Residents Marketing campaign for the Atmosphere Govt Director Adrienne Esposito stated, “The choice of Dawn Wind and Empire Wind clearly indicators that New York is dedicated to advancing offshore wind and persevering with our renewable power revolution. These two offshore wind initiatives are already properly superior within the regulatory and siting course of which supplies a time benefit that NY was sensible to leverage. Persevering with these initiatives is a brilliant financial choice that can present native jobs, cleaner air and assists us in reaching our carbon discount targets. This worthwhile announcement creates optimistic momentum for our power transition and boldly states that NY is open for enterprise for offshore wind implementation. Thanks to Governor Hochul’s management and the staff at NYSERDA for his or her thorough, considerate expediated evaluation. Collectively we’re constructing a cleaner, greener New York.”

New York Metropolis Environmental Justice Alliance Govt Director Eddie Bautista stated, “NYC-EJA is thrilled to see these offshore wind initiatives shifting ahead. These initiatives deliver the chance to drastically modernize our port and power infrastructure whereas cleansing the air we breathe. The re-industrialization of our waterfront, if performed accurately, will make use of our group members and it doesn’t should be on the expense of our well being. We look ahead to enjoying an lively half within the growth and operation of those initiatives to make sure working class individuals inside our neighborhood in the end profit from these investments.”

Heart for Financial Progress President Mark Eagan stated, “In the present day’s announcement indicators New York State’s dedication to constructing a sustainable and strong marketplace for offshore wind. CEG seems to be ahead to persevering with its partnerships with Empire Wind and Dawn Wind to ship group and financial advantages within the Capital Area.”

New York Metropolis Financial Improvement Company (NYCEDC) Chief Working Officer Melissa Román Burch stated, “NYSERDA’s choice of Equinor’s Empire Wind 1 challenge within the state’s fourth offshore wind solicitation spherical strikes us one step nearer to remodeling the South Brooklyn Marine Terminal (SBMT) into one of many largest offshore wind port services within the nation and pave the best way for significant job creation within the clear power sector. We look ahead to working with our companions within the personal sector, in addition to in state and metropolis authorities, to proceed to revitalize our waterfront infrastructure, construct a clear power future, and create jobs for all New Yorkers.”

UPROSE Govt Director Elizabeth Yeampierre stated, “UPROSE and the Sundown Park group have lengthy fought to protect the economic character of New York Metropolis’s largest industrial waterfront. Offshore wind is a chance to middle racial justice and operationalize a simply transition by supporting the community-led imaginative and prescient for a inexperienced re-industrialization and creating 1000’s of well-paying native jobs. We’re devoted to making sure the event and operation of those offshore wind initiatives mannequin a real Simply Transition and serve for example for the nation. Environmental justice communities have been the reluctant hosts of polluting fossil gasoline infrastructure for generations, and have to be prioritized for clear power investments in workforce growth, native hiring, and community-ownership.”

New York State’s Nation-Main Local weather Plan

New York State’s local weather agenda requires an orderly and simply transition that creates family-sustaining jobs, continues to foster a inexperienced financial system throughout all sectors and ensures that a minimum of 35 %, with a purpose of 40 %, of the advantages of unpolluted power investments are directed to deprived communities. Guided by a number of the nation’s most aggressive local weather and clear power initiatives, New York is advancing a collection of efforts – together with the New York Cap-and-Make investments program (NYCI) and different complementary insurance policies – to scale back greenhouse fuel emissions 40 % by 2030 and 85 % by 2050 from 1990 ranges. New York can be on a path to reaching a zero-emission electrical energy sector by 2040, together with 70 % renewable power technology by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York’s unprecedented clear power investments, together with greater than $40 billion in 64 large-scale renewable and transmission initiatives throughout the State, $6.8 billion to scale back constructing emissions, $3.3 billion to scale up photo voltaic, practically $3 billion for clear transportation initiatives and over $2 billion in NY Inexperienced Financial institution commitments. These and different investments are supporting greater than 170,000 jobs in New York’s clear power sector as of 2022 and over 3,000 % progress within the distributed photo voltaic sector since 2011. To cut back greenhouse fuel emissions and enhance air high quality, New York additionally adopted zero-emission automobile laws, together with requiring all new passenger automobiles and light-duty vehicles offered within the State be zero emission by 2035. Partnerships are persevering with to advance New York’s local weather motion with greater than 400 registered and greater than 130 licensed Local weather Good Communities, practically 500 Clear Power Communities, and the State’s largest group air monitoring initiative in 10 deprived communities throughout the State to assist goal air air pollution and fight local weather change.

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