In a significant development for New York State's renewable energy sector, Governor Kathy Hochul has announced the conditional awarding of contracts for two offshore wind projects. Equinor's Empire Wind 1 and the joint project Sunrise Wind by Eversource and Ørsted, which had previously canceled their contracts, have now been reinstated, marking a major step forward in the state's clean energy ambitions.

The contracts, secured through New York State's fourth offshore wind solicitation, will see the development of the 810-megawatt (MW) Empire Wind 1 and the 924 MW Sunrise Wind. These projects had initially signed contracts in 2019 but were later canceled. However, they have now reached viable power purchase agreements in this latest round of solicitation.

Both Empire Wind 1 and Sunrise Wind are considered "shovel-ready" projects, with most federal and state permitting milestones already completed. Empire Wind 1 received final approval of its Construction and Operations plan from the US Bureau of Ocean Energy Management last week.

Once operational, these offshore wind projects will have a significant impact on New York's energy landscape. Together, they will generate enough clean power to supply one million households, contributing approximately 10% of the electricity consumed in New York City and Long Island. Furthermore, they are projected to reduce greenhouse gas emissions by over 3 million metric tons annually, equivalent to the annual emissions of over 740,000 cars.

The economic benefits of the projects are also substantial. Empire Wind 1 and Sunrise Wind will invest a total of $2 billion in economic development across New York, creating 800 jobs during the construction phase. To support their operations, the projects will utilize the South Brooklyn Marine Terminal assembly and staging port, which is expected to generate an additional 400 construction jobs this year.

In addition to the direct investments, Equinor, Eversource, and Ørsted have pledged $135 million for grid infrastructure on Long Island and $200 million for other transmission-related investments, further bolstering the renewable energy infrastructure in the state.

According to Sam Salustro, vice president of strategic communication at the offshore wind nonprofit Oceantic Network, the revival of these contracts signifies a new phase for the industry, reflecting a better understanding of project finances and the integration of knowledge gained over the past several years.

New York State has set an ambitious target of developing 9,000 megawatts of offshore wind energy by 2035. The awarding of contracts to Equinor, Eversource, and Ørsted brings the state closer to achieving this goal. Sunrise Wind is scheduled to come online in 2026, followed by Empire Wind 1 in 2027.

With these offshore wind projects, New York is solidifying its position as a leader in renewable energy development, forging a path towards a cleaner and more sustainable future.