New York’s third offshore wind solicitation has drawn proposals from major companies that are competing to install a minimum of 2 GW in concert with a $500 million state infrastructure investment to build out the offshore wind supply chain.
The teams of Ørsted and Eversource, RWE and National Grid, Invenergy and energyRE, and Equinor and bp submitted joint bids before bidding closed Thursday. Rise Light & Power, which is working to transform the former fossil fuel plant Ravenswood Generating Station in New York City into a clean energy hub, submitted an independent bid to connect 1.3 GW of offshore wind to the plant so one of its fossil fuel generators can be retired.
The New York State Energy Research and Development Authority, or NYSERDA, will announce the winners before the end of the first quarter.
Gov. Kathy Hochul, D, said in 2022 that NYSERDA will couple this third procurement with the $500 million investment in ports, manufacturing and supply chain infrastructure “to obtain maximum leverage for New York” as the state aims for a target of 9 GW of offshore wind by 2035.
Equinor already bid successfully in two of NYSERDA’s solicitations, and is working with partner bp to bring the 816-MW Empire Wind 1, 1,260-MW Empire Wind 2 and 1,230-MW Beacon Wind projects online. Equinor and bp propose using the third solicitation to launch a 1,360-MW Beacon Wind 2 project.
Ørsted and Eversource are working on the fourth project in NYSERDA’s portfolio, the 924-MW Sunrise Wind Project, as well as the 130-MW South Fork Wind Farm for the Long Island Power Authority – expected to be the state’s first operational offshore wind farm.
In a press release about their submission, Ørsted and Eversource said that it included “multiple bids with different configurations.”
Eversource announced in May that it had launched a strategic review of its offshore wind portfolio that may lead to a sale of its 50% stake in its joint offshore wind assets with Ørsted. Eversource spokesperson John Olivieri said the strategic review “remains ongoing and will not be affected by the bids that the [joint venture] submitted.”
Invenergy and energyRE’s bid of a 2.1 GW project is the largest proposal that’s been announced. RWE and National Grid are proposing to deliver 1.3 GW, but promise $3 billion in economic benefits to New York, and a supply chain investment plan that would localize blade and nacelle facilities in partnership with General Electric.
RWE and National Grid also aim to bring steel fabrication and processing to Orange County, and exceed the solicitation's target for U.S.-made steel.
Evaluation of the proposals will give 70% weight to price considerations, 20% to economic benefits to New Yorkers, and 10% to project viability, according to NYSERDA.