New York Launches Next Wind Solicitation as Work Begins on Sunrise Wind

Orsted completed South Fork Wind this year and now will start its second New York project (Orsted)

PUBLISHED JUL 17, 2024 4:15 PM BY THE MARITIME EXECUTIVE

 

 

New York officials used the ceremony marking the start of construction for the next offshore wind farm, Ørsted’s Sunrise Wind, as the opportunity to also officially open the state’s fifth wind solicitation. They called the developments the latest mileposts in the state’s renewable energy strategy.

The fifth round launched today, July 17, with proposals due by September 9. State officials did not declare a specific target but it presents an opportunity to restart several projects that were canceled when they decided to cancel the third-round solicitation. Three projects, Attentive Energy One for 1.4 GW to be developed by TotalEnergies, Rise Light & Power, and Corio Generation; Community Offshore Wind for 1.3 GW to be developed by RWE Offshore Renewables and National Grid Ventures; and Excelsior Wind for 1.3 GW to be developed by Vineyard Offshore, were selected before the round was canceled with the state citing GE’s decision not to proceed with larger turbines.

Companies submitting to the next round will have till October to set their price proposals. The state tentatively plans to announce the selected projects in November and expects to execute contracts by the first quarter of 2025.

The fourth round was used to permit projects including Sunrise Wind to resent its price agreements. Sunrise was reselected and completed a new contract with NYSERDA at $146 per MWh for 25 years.

Today, the project marked its official start of construction after in June receiving its final federal approvals. Work began for the onshore power transmission network nearly a year ago. The company said when it received federal approval in June that expected to ramp up offshore construction later this year with the project expected to be in operation in 2026. It will consist of approximately 84 wind turbines.

“Today’s shovels in the ground, paired with the launch of New York’s fifth offshore wind solicitation, marks yet another step forward in advancing offshore wind in New York State, and realizing the potential of this powerhouse industry in accelerating the State’s energy transition and growing our economy.,” said Doreen Harris, President and CEO of New York State Energy Research and Development Authority (NYSERDA) which oversees the new industry.

Sunrise Wind is being cited as New York’s largest offshore wind project and building on the momentum of Southfork Wind which began full operation earlier this year. Sunrise Wind will be located approximately 30 miles east of Montauk, New York. When completed it will have a generating capacity of 924 MW, which is equivalent to power for approximately 600,000 homes. New York Governor Kathy Hochul highlighted that its development represents an investment of more than $700 million.

Ørsted completed the acquisition of the project in July buying the 50 percent share from its former partner Eversource. The final price was $152 million reduced from a previous estimate of $230 million due to lower actual capex spending so far in 2024. Ørsted assumed full ownership, which had been conditional on completing the NYSERDA agreement and it took the final investment decision for the project in March.

The original lease was awarded 11 years ago in July 2013 in the beginning stages of the U.S. offshore wind industry. Sunrise closely follows the launch of Empire Wind being developed by Equinor. Work for the first phase of this project began in June to support Empire Wind 1 which will be 810 MW and with its second phase has the potential for more than 2 GW.