NYSERDA (New York State Energy Research and Development Authority) announced on Tuesday the finalization of power purchase agreements for two offshore wind projects proposed by Equinor, Orsted and Eversource. The contracts are part of a program to support the struggling offshore wind industry and maintain New York’s ambitious clean energy goals.
Selection of Empire Wind 1 and Sunrise Wind projects
Last February, NYSERDA awarded conditional contracts to the Empire Wind 1 project from Equinor, a Norwegian company, and Sunrise Wind, jointly developed by Orsted, a Danish company, and Eversource, an American energy supplier. This decision demonstrates New York State’s commitment to promoting renewable energy and reducing its dependence on fossil fuels.
Equinor seeks a partner to reduce its financial exposure
In a separate press release, Equinor declared its intention to join forces with a partner for its Empire Wind 1 project, in order to reduce its financial exposure. This decision follows the significant losses incurred by Equinor and Orsted last year on their US offshore wind portfolios, due to rising costs and supply chain constraints.
Challenges and prospects for the offshore wind industry
Despite the challenges facing the offshore wind industry, NYSERDA’s finalization of these contracts demonstrates New York State’s commitment to supporting this sector and pursuing its clean energy goals. The Empire Wind 1 and Sunrise Wind projects are expected to make a significant contribution to renewable energy production in the state, while creating jobs and boosting the local economy.
The realization of these offshore wind projects marks an important step in New York’s energy transition. However, there are still many challenges to be met, particularly in terms of reducing costs, optimizing the supply chain and developing the infrastructure needed to transmit electricity generated at sea to onshore grids.
