By Liz Burdock, President & CEO, Business Network for Offshore Wind
On October 23, 2019, Governor Andrew M. Cuomo announced, and released, the finalized contracts executed between NYSERDA and the Empire Wind (816 MW) and Sunrise Wind (880 MW) offshore wind projects. With a total of 1,696 MWs of offshore wind electricity generation capacity now under contract, New York State leads the United States in terms of awarded projects.
The average all-in development cost of the two projects is $83.36/MWh, in 2018 dollars. The average OREC cost is expected to be $25.14/MWh.
The contracted projects are together expected to result in $3.2 billion in combined economic benefits across New York State, with more than 1,600 direct new jobs anticipated. $85 million will be invested to support port facilities and technological innovation.
Also on October 23, NYSERDA released the Launching New York’s Offshore Wind Industry: Phase 1 Report (click here), a filing to the New York State Department of Public Service. This report noted that New York’s first offshore wind solicitation garnered the most competitive response of any American offshore wind procurement conducted to date, as it received bids from OCS lease areas ranging from New Jersey to New England. It also highlights that the average OREC price ($25/MWh) achieved by the two projects was approximately $15 lower than the $40/MWh price predicted by NYSERDA’s January 2018 “Offshore Wind Policy Options Paper” (click here).