Ørsted and Eversource Win Bid for Updated Sunrise Wind Project in New York

Rhea-AI Summary

New York State selects Ørsted and Eversource for the Sunrise Wind offshore wind farm, aiming to create jobs and aid in meeting climate goals. The 924-megawatt project is set to be operational in 2026, bringing economic benefits and clean power to New Yorkers.

Insights

Energy Policy Analyst

The Sunrise Wind project represents a significant move towards New York's commitment to renewable energy and its climate targets. The selection of Ørsted and Eversource's proposal by New York State indicates a strategic shift towards large-scale renewable projects that promise to deliver both environmental and economic benefits. The 924-megawatt capacity of the offshore wind farm is poised to contribute substantially to New York's electricity grid, reducing reliance on fossil fuels and potentially stabilizing energy prices in the long term.

The project's use of high-voltage direct current (HVDC) transmission technology is noteworthy, as it is more efficient for transferring power over long distances compared to traditional alternating current (AC) systems, which could lead to reduced transmission losses and improved grid reliability. This technological advancement is indicative of the innovative approaches being adopted in the renewable energy sector to enhance efficiency and performance.

Economic Development Expert

The economic impact of the Sunrise Wind project extends beyond the environmental sphere, with the creation of hundreds of local union jobs and investments in the state's supply chain. The $200 million contract awarded to Haugland Energy Group LLC and the $86 million contract with Riggs Distler & Company, Inc. for construction and manufacturing work demonstrate the project's capacity to stimulate local economies, particularly in the areas of Suffolk County and the Port of Coeymans.

These contracts will not only generate immediate employment but also have the potential to foster long-term economic growth by establishing New York as a hub for offshore wind energy expertise. The development of the National Offshore Wind Training Center and the research partnership with Stony Brook University are strategic investments in human capital that could position New York as a leader in renewable energy education and innovation, with ripple effects across the sector.

Environmental Economist

From an environmental economics standpoint, the Sunrise Wind project aligns with the broader trend of incorporating externalities, such as public health and climate change, into economic planning. The project's potential to deliver public health benefits by reducing air pollution is a critical aspect of its value proposition. Additionally, the establishment of an operations and maintenance hub emphasizes the project's long-term commitment to sustainability and the creation of enduring employment opportunities within the green economy.

The long-term benefits of such a project may include reduced healthcare costs associated with pollution, enhancement of energy security and the mitigation of climate change impacts. These factors contribute to the overall social welfare and can be seen as investments in the state's future resilience and prosperity.

Ready-to-Build Project Set to Create Jobs and Help N.Y. Meet Its Climate Goals; Sunrise Wind Would Be Largest U.S. Offshore Wind Farm Upon Completion in 2026

NEW YORK--(BUSINESS WIRE)-- New York State has selected Ørsted and Eversource to negotiate a new 25-year contract for their Sunrise Wind offshore wind farm. This conditional award brings the 924-megawatt project one critical step closer to fulfilling its promise to deliver substantial economic benefits across New York and help the state meet its climate goals.

NYSERDA President and CEO Doreen M. Harris said, “As we reset New York's offshore wind portfolio, we continue to evolve and strengthen the private-public partnerships that will keep us on a path to crystalizing one of the most ambitious offshore wind goals in the nation. NYSERDA looks forward to Sunrise Wind delivering clean power to our grid in the near term while helping our local communities realize the family-sustaining jobs, private investment, and public health benefits that offshore wind can bring to millions of New Yorkers."

Sunrise Wind will now begin the next steps of finalizing agreements with New York’s energy agency, New York State Energy Research and Development Authority (NYSERDA), on the OREC (Offshore Wind Renewable Energy Certificates) contract. The project is anticipated to be operational in 2026 and will begin the full scope of construction once it has received all federal permits, slated for this summer. The final investment decision on Sunrise Wind is expected to be made in the second quarter of 2024.

“With the selection of Sunrise Wind, New York’s offshore wind story is set to enter a new chapter of large-scale job creation and economic development, and we thank Governor Hochul and her administration for their continued leadership,” said David Hardy, Group EVP and CEO Americas at Ørsted. “We’re ready to build on the foundation we’ve laid with New York’s first offshore wind project, South Fork Wind, while delivering significantly more jobs, local supply chain and community investments, and renewable power for New Yorkers.”

“We’re grateful for the Hochul Administration’s support of the state’s offshore wind industry and their selection of our updated Sunrise Wind project,” said Eversource Energy Chairman, President and Chief Executive Officer Joe Nolan. “Sunrise Wind is another major step forward for our shared clean energy future and will deliver significant new investments to New York State, including the creation of hundreds of local union jobs building the project’s onshore transmission system. We’re excited to get shovels in the ground and begin the full scope of onshore construction.”

Joint venture partners Ørsted and Eversource submitted a new proposal for Sunrise Wind in response to New York’s latest offshore wind solicitation, re-bidding an updated project. The Sunrise Wind design has been reviewed and accepted by all relevant state agencies, and the project has secured all major supplier and project labor agreements.

Sunrise Wind has earned broad bipartisan support across New York from local elected officials and business, community, labor and environmental organizations.

With this successful re-bid, Ørsted will acquire Eversource’s 50 percent ownership share in Sunrise Wind, becoming the sole owner of Sunrise Wind, subject to signing of an OREC contract with NYSERDA, finalization of acquisition agreements, receipt of the federal construction and operations plan, and relevant regulatory approvals. Eversource will remain contracted to lead the project’s onshore construction.

Sunrise Wind’s Community Investments

Sunrise Wind is making significant investments in the state’s offshore wind workforce and supply chain, including:

• A record $200 million offshore wind supply chain award to Long Island-based contractor Haugland Energy Group LLC, which will create more than 400 jobs for New York union workers to install the underground duct bank system for Sunrise Wind’s onshore transmission line in Brookhaven, in Suffolk County.
• $86 million supply chain contract with Riggs Distler & Company, Inc., bringing construction and steel manufacturing work to Capital Region and Western New York companies supporting the construction of advanced foundation components for wind turbines at the Port of Coeymans. That contract is creating 230 family-sustaining jobs.
• Supporting the development of New York’s National Offshore Wind Training Center on Long Island with a $10 million investment.
• Advancing the first offshore wind project in America to use high-voltage direct current transmission technology.
• Investing $5 million in a research partnership with Stony Brook University.
• Establishing an operations and maintenance hub in East Setauket and harbor facility in Port Jefferson to support wind farm operations and the long-term associated operations and maintenance jobs.
• Completed a host community agreement with the Town of Brookhaven.

About Ørsted
A global clean energy leader, Ørsted develops, constructs, and operates offshore and land-based wind farms, solar farms, energy storage facilities, and bioenergy plants. Ørsted was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi) and is recognized as the world’s most sustainable energy developer in the Corporate Knights Global 100 index.

In the United States, the company has approximately 700 employees and a portfolio of clean energy assets and partnerships that includes offshore wind energy, land-based wind energy, solar, battery storage and e-fuels. Ørsted is a U.S. leader in offshore wind energy with approximately 3 gigawatts in development and operates America’s first offshore wind farm, located off the coast of Block Island. Ørsted has a total U.S. land-based capacity of 5 gigawatts across wind, solar, storage technologies and e-fuels. To learn more about the Ørsted U.S. business, visit us.orsted.com or follow the company on X (@OrstedUS), Instagram, and Facebook.

About Eversource
Eversource (NYSE: ES), celebrated as a national leader for its corporate citizenship, is the #1 energy company in Newsweek’s list of America’s Most Responsible Companies for 2024 and recognized as a Five-Year Champion, appearing in every edition of the list. Eversource transmits and delivers electricity and natural gas and supplies water to approximately 4.4 million customers in Connecticut, Massachusetts and New Hampshire. The #1 energy efficiency provider in the nation, Eversource harnesses the commitment of approximately 9,900 employees across three states to build a single, united company around the mission of safely delivering reliable energy and water with superior customer service. The company is empowering a clean energy future in the Northeast, with nationally recognized energy efficiency solutions and successful programs to integrate new clean energy resources like a first-in-the-nation networked geothermal pilot project, solar, offshore wind, electric vehicles and battery storage, into the electric system. For more information, please visit eversource.com, and follow us on X, Facebook, Instagram, and LinkedIn. For more information on our water services, visit aquarionwater.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229422653/en/

Media

Meaghan Wims

mwims@duffyshanley.com

401-261-1641

Source: Ørsted and Eversource

FAQ

What is the name of the offshore wind farm project mentioned in the press release?

The offshore wind farm project mentioned in the press release is Sunrise Wind.

When is the Sunrise Wind project expected to be operational?

The Sunrise Wind project is anticipated to be operational in 2026.

Which companies have been selected for the Sunrise Wind project?

Ørsted and Eversource have been selected for the Sunrise Wind project.

What is the total capacity of the Sunrise Wind project?

The Sunrise Wind project has a total capacity of 924 megawatts.

What are some of the economic benefits associated with the Sunrise Wind project?

The Sunrise Wind project aims to deliver substantial economic benefits, create jobs, and help New York meet its climate goals.

What is the timeline for the final investment decision on the Sunrise Wind project?

The final investment decision on Sunrise Wind is expected to be made in the second quarter of 2024.