New York Readies for Potential Offshore Wind Project Cancellations

October 13, 2023, by Adnan Memija

New York Governor Kathy Hochul has announced the release of a new 10-Point Action Plan to expand and support the growing large-scale renewable energy industry in the state. One of the plan’s points outlines that the New York State Energy Research and Development Authority (NYSERDA) plans to launch an accelerated renewable energy procurement process for both offshore and onshore projects aiming to backfill any contracted projects that are terminated.

The procurement process will be guided by core principles, including prioritising competition, simplifying bid requirements, incorporating inflation indexing, applying critical labor protections, and collaborating with the industry to optimise the accelerated procurement timing, according to NYSERDA.

This announcement follows The New York State Public Service Commission’s decision to deny petitions filed by a group of offshore wind developers and state renewable energy trade association seeking financial relief for four proposed offshore wind projects and 86 land-based renewable projects.

The petitions denied were submitted by Empire Offshore Wind LLC and Beacon Wind LLC, Sunrise Wind LLC, and the Alliance for Clean Energy New York, Inc. (ACENY).

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The 10-point Action Plan details a series of benchmarks and activities slated for the coming months, offering insight into how the Governor’s Administration plans to overcome recent macroeconomic and inflationary challenges that have impacted the renewable energy sector, according to the press release.

“This 10-point action plan underscores our commitment to addressing challenges that this sector is experiencing all across the country and hardens our resolve to ramp up our efforts in providing affordable and clean energy to all New Yorkers,” said Governor Hochul.

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In one of its points, NYSERDA says it will announce a suite of awards in the near future comprised of offshore and onshore renewable energy projects, along with major supply chain investments.

The Authority said that the plan serves to reinforce New York State’s dedication to clean energy development, sustainability, and economic growth, and supports the State’s progress towards achieving Climate Act goals, including obtaining 70 per cent of the State’s electricity from renewable sources by 2030.