New York will invest in three offshore wind projects

New York has committed to funding three major offshore wind initiatives as part of its aggressive strategy to shift to renewable energy sources, as announced by Governor Kathy Hochul on Tuesday.

In her announcement, the Governor, a Democrat, highlighted these conditional awards amidst rising development costs impacting offshore wind ventures in New York and globally. Additionally, the state has granted awards to 22 terrestrial projects involving solar, wind, and hydro energy. Collectively, these initiatives will supply power to about 2.6 million households, with the offshore wind projects contributing nearly two-thirds of this capacity.

“This is an historic investment to demonstrate our full commitment to renewables,” stated Hochul during the investment announcement ceremony.

Integral to New York’s goal of achieving a carbon-neutral electricity system by 2040, offshore wind plays a key role. The state’s legal mandate is to source 70% of its electricity from renewables by 2030 and to develop 9,000 megawatts of offshore wind power by 2035.

Presently, an offshore wind farm is under construction near Long Island.

However, offshore wind firms are contending with unexpected cost surges for materials like steel, alongside rising loan costs and supply chain disruptions. This has prompted some developers in other states to seek contract cancellations. To support a wind project developer, New Jersey recently sanctioned a tax incentive.

Governor Hochul, along with the Democratic governors of five other northeastern states, recently petitioned the Biden administration for increased federal funding for offshore wind projects, citing concerns about the viability of a key element in combating climate change.

Earlier in the month, New York’s power regulators turned down requests for extra funding for four offshore wind projects, which were expected to provide 4,230 megawatts of energy. The developers of these projects are reevaluating their feasibility following the regulatory decision.

The New York State Energy Research and Development Authority is now finalizing agreements with three offshore wind projects—Attentive Energy One, Community Offshore Wind, and Excelsior Wind—totaling 4,032 megawatts.

These projects are slated to be operational by 2030.

Despite the increased costs of offshore wind development, state energy authorities maintain that these projects will be beneficial to consumers. They predict an average monthly bill increase of approximately $2.93, as per state estimates.

The awards for land-based renewable projects were allocated to 14 new solar projects, six wind re-powering projects, one new wind project, and a hydroelectric project being restored to operation.