New York State Power Analysis and Growth Authority (NYSERDA) has chosen Equinor’s Empire Wind 1 and Ørsted and Eversource’s Dawn Wind initiatives within the state’s fourth offshore wind solicitation. Each initiatives secured agreements with the state earlier and re-bid on this procurement spherical to barter new 25-year contracts.
NYSERDA and the builders of the chosen initiatives will now negotiate Offshore Wind Renewable Power Certificates (OREC) Buy and Sale Agreements, with contract execution anticipated within the second quarter of this 12 months.
NYSERDA launched the fourth, expedited offshore wind solicitation in December 2023. Initiatives with current agreements had been additionally in a position to bid because the request for proposals (RFP) didn’t require initiatives with current Offshore Renewable Power Credit score (OREC) contracts to terminate them. Nevertheless, the foundations require cancelling an current OREC settlement if a such venture fails to win on this solicitation.
For Equinor, the win comes shortly after its Empire Wind initiatives acquired federal approval. Whereas the corporate has progressed the 816 MW Empire Wind 1 to close building and re-bid the wind farm within the state procurement, Equinor terminated the OREC settlement for Empire Wind 2 at first of this 12 months and mentioned the transfer repositioned the venture to “proceed improvement in anticipation of latest offtake alternatives”.
In a press launch on 29 February, the developer highlighted Empire Wind 1 was a shovel-ready venture.
Equinor expects to take a closing funding resolution on Empire Wind 1 in mid-2024 and plans to make use of venture financing, with monetary shut anticipated by the top of 2024. The corporate additionally revealed on 29 February an intention to usher in a companion within the venture.
As soon as the venture reaches monetary shut, it is going to transfer into the development stage. The primary energy from Empire Wind 1 is anticipated in 2026.
A key part of the 816 MW venture is the transformation of the South Brooklyn Marine Terminal (SBMT) in Sundown Park, the place Equinor will construct Empire Wind’s operations and upkeep (O&M) facility, with building scheduled to start this Spring.
By being chosen in New York’s fourth offshore wind procurement spherical, Ørsted and Eversource Power’s 924 MW Dawn Wind offshore wind farm is now on its approach to changing into totally owned by Ørsted.
This follows the settlement the 2 companions signed at first of this 12 months, below which Ørsted will purchase Eversource’s 50 per cent share of the offshore wind farm. One of many circumstances for the acquisition to maneuver ahead is Dawn Wind being chosen in New York’s fourth solicitation for offshore wind capability, which has now been fulfilled.
The takeover remains to be topic to the signing of an OREC contract with NYSERDA, finalisation of acquisition agreements, receipt of the development and operations plan (COP), and related regulatory approvals.
Ørsted additionally notes that its New York venture that received on this spherical is ready-to-build, in addition to that, along with Eversource, the corporate submitted a brand new proposal for Dawn Wind in response to New York’s newest offshore wind solicitation, re-bidding an up to date venture.
Dawn Wind submitted a COP in September 2020 and the Bureau of Ocean Power Administration (BOEM) began its environmental evaluation the next 12 months. On 11 December 2023, BOEM introduced that the company had accomplished its environmental evaluation of the Dawn Wind venture and issued the Ultimate Environmental Impression Assertion (EIS).
On 20 December 2023, the developer submitted an up to date COP for Dawn Wind to BOEM. After the environmental evaluation, BOEM will both approve, disapprove, or approve with modifications the proposed actions, the company says on its web site.
Ørsted expects to make the ultimate funding resolution on the 924 MW Dawn Wind venture within the second quarter of 2024.
The 924 MW offshore wind farm is anticipated to be operational in 2026 and can start the total scope of building as soon as it has acquired all federal permits, slated for this summer season, in keeping with the developer.
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