Equinor, Orsted, and a joined venture between RWE and National Grid have submitted bids for offshore wind projects, according to New York State Energy Research and Development Authority (NYSERDA).
This follows New York latest solicitation allowing companies to exit old contracts and rebid the projects at higher prices. In 2023, several developers canceled old contracts to sell offshore wind power in Massachusetts, Connecticut, and New Jersey as soaring inflation, higher interest rates, and supply chain snags made those old agreements uneconomic.
If awarded, Equinor’s spokesperson stated that construction at the South Brooklyn Marine Terminal is expected to begin in the first half of this year, with the first power expected in 2026. The expected commercial operation date is 2027.
Community Offshore Wind has submitted two proposals for their project, which is set to begin construction in late 2027 and be operational by the end of 2031.
In a separate development, Orsted, the world’s largest offshore wind company, announced on Thursday that it was exiting a deal to supply offshore wind power to Maryland from its Skipjack Wind project due to the previously agreed-upon contract no longer being commercially viable.
Equinor also submitted a bid for their Empire Wind project, shortly after agreeing to take full ownership of the project from their former joint venture partner, BP. As part of the deal, BP took full ownership of the Beacon Wind project off New York.
Orsted has also bid for their Sunrise Wind project and has stated that they will acquire Eversource’s 50% stake in the project if their bid is successful. RWE and National Grid have also submitted a bid for their joint venture Community Offshore Wind project.
One megawatt of offshore wind can power approximately 500 homes in the United States. However, industry giants such as BP, Equinor, and Orsted have taken significant writedowns in 2023 on their US offshore wind projects, as their power sales contracts were not enough to cover the costs.
The development of offshore wind is crucial to meeting both national and state clean energy targets. To ensure that projects do not fall through, some states, including New York, have allowed developers to cancel old contracts and re-offer projects at higher prices.
Equinor, who had an old contract with New York, has submitted a new bid for their Empire Wind 1 project and plans to bid for the Empire Wind 2 wind farm in a future solicitation. Notably, BP has not yet announced their plans for their Beacon Wind 1 project, which also had an old contract with New York. Before their joint venture split, BP had been seeking changes to the structure of their deal with Equinor.
