Orsted and Eversource Win Offshore Wind Farm in New York

By Editor


New York State Energy Research and Development Authority (NYSERDA) has conditionally granted Orsted and Eversource’s Sunrise Wind project the opportunity to negotiate a 25-year offshore wind renewable energy certificate (OREC) agreement.

This agreement pertains to an offshore wind farm with a maximum capacity of 924 MW. The specific price per MWh for power generated from the Sunrise Wind project will be disclosed upon the conclusion of negotiations. Once finalized, this contract will supersede the existing OREC agreement, initially awarded to Sunrise Wind in 2019.

Scheduled for completion in 2026, subject to OREC negotiations, customary state and federal approvals, and Orsted’s final investment decision, expected in Q2 2024, the Sunrise Wind project represents a significant step forward in New York’s renewable energy landscape. All relevant state agencies have reviewed and accepted the Sunrise Wind design, with the project having secured major supplier and project labor agreements. Final federal permits are anticipated to be obtained this summer.

David Hardy, Executive Vice President and CEO of Region Americas at Orsted, expressed his appreciation for Governor Hochul’s commitment to clean energy and the state’s agility in responding to evolving economic dynamics. He emphasized that with the current bid price reflecting prevailing component and financing costs, Sunrise Wind is poised to provide clean energy solutions to New York.

David Hardy said: “With the impending completion of the South Fork Wind project, New York’s inaugural offshore wind farm, and the progress on Sunrise Wind, we are set to deliver economic benefits and local job opportunities while facilitating New York’s ambition to achieve 70 percent renewable energy by 2030.”

Orsted’s strategic vision extends beyond individual projects, with plans to establish an offshore wind cluster along the US Northeast coast. This cluster, consisting of South Fork Wind (130 MW under construction), Revolution Wind (704 MW under construction), and Sunrise Wind (924 MW), accompanied by port assets, a skilled workforce, and supply chain partnerships, is poised to play a pivotal role in current and future projects. Furthermore, Orsted possesses seabed and assets along the US East Coast, exploring avenues to maximize value.

In a recent announcement, Orsted disclosed its intention to acquire full ownership of Sunrise Wind from its current joint venture partner, Eversource, subject to the signing of the OREC agreement, execution of long-form acquisition agreements with Eversource, receipt of construction and operations plan (COP) approval, and relevant regulatory approvals. This move underscores Orsted’s commitment to advancing offshore wind initiatives in the region.

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