New York offshore wind set for $500m boost and 2GW auction

published on 07/01/2022
New York

Governor’s ‘state of the state’ address outlines plan for investment in manufacturing and supply chain infrastructure

New York State governor Kathy Hochul has announced a plan to invest $500 million in offshore wind as part of her 2022 ‘State of the State’ address this week. 

Under the plan, the state hopes $500 million of direct investment into critical offshore wind manufacturing and supply chain infrastructure will leverage private capital to produce an estimated $2 billion in economic activity while delivering green energy and creating jobs at the same time.

The New York State Energy Research and Development Authority (Nyserda) is due to launch its next offshore wind procurement in 2022, Governor Hochul announced. This is expected to result in at least 2GW of new projects.

"With this investment, New York will lead the nation on offshore wind production, creating green jobs for New Yorkers, and powering our clean energy future," governor Hochul said. 

Governor Hochul's offshore wind plan is estimated to have a combined economic impact of $12.1 billion statewide, and to produce more than 4.3GW of capacity, capable of powering nearly three million homes — half of the state’s 2035 goal – she said.  

"I am proud to make New York a leader in offshore wind and renewable energy. We must harness the potential of offshore wind to fuel our economy forward and meet our ambitious climate goals," Hochul added.  

The state will also look to unlock deep-water offshore wind development, and to deliver an offshore wind grid capable of carrying at least 6GW of offshore wind energy into New York City. State agencies will initiate a study to identify strategic cable corridors and access key points of interconnection to the grid. 

Offshore momentum

International energy giants Equinor and BP emerged in January 2021 as the winners of New York’s first offshore wind tender, for 2.5GW of capacity.

In a separate development last June, the US Department of Interior proposed leasing sites in the New York Bight – a stretch of water between New York and New Jersey – capable of supporting 7GW of offshore wind capacity.

Construction of New York’s first offshore wind farm, the 132MW South Fork project, is due to commence in early 2022.

Source: windpowermonthly