RWE Wins Bid for 1.3 GW offshore wind project in New York

By Editor


New York State Governor Kathy Hochul has revealed that RWE’s Community Offshore Wind, a joint venture with National Grid Ventures, has been provisionally awarded a significant 1.3 gigawatt (GW) offtake contract as part of the State’s third solicitation for offshore wind projects.

This groundbreaking wind power project will be developed in phases within RWE’s 3.2 GW seabed lease in the New York Bight, of which RWE holds a 2.3 GW share. This lease was acquired during a federal auction conducted by the Bureau of Ocean Energy Management (BOEM) in 2022.

Notably, RWE’s award is one of three announced by the New York State Energy Research and Development Authority (NYSERDA). The weighted average strike price for this award group stands at $145.07 per megawatt-hour (MWh) in nominal dollars. These prices may undergo further adjustments based on various factors, such as price indices, interconnection costs, and federal support.

The initial phase of this offshore wind project is expected to generate enough clean energy to power over 500,000 U.S. households. Furthermore, it is projected to reduce New York’s electricity system-related carbon emissions by up to 5 percent from the 2031 baseline scenario set by the New York Independent System Operator (NYISO). The energy generated by this project will be interconnected into Brooklyn, New York, further enhancing the state’s offshore wind capacity.

In addition to its environmental benefits, this project is set to bring substantial economic advantages to New York. It will generate $3.3 billion in incremental economic benefits and allocate $530 million towards expenditures and labor in disadvantaged communities throughout the project’s lifetime. Over 800 well-paying jobs will be created during the project’s duration, with a focus on recruiting from disadvantaged communities, local businesses, and the union workforce.

Sven Utermohlen, CEO of RWE Offshore Wind, expressed his excitement about this significant milestone, emphasizing RWE’s commitment to renewables in the United States. He highlighted RWE’s extensive experience in developing, building, and operating offshore wind projects and its dedication to fostering economic prosperity in the communities involved.

As part of the offtake award from NYSERDA, Community Offshore Wind will play a crucial role in strengthening the domestic supply chain by purchasing blades and nacelles made in New York in collaboration with General Electric.

Moreover, the project will contribute to the development of New York’s offshore wind workforce, with a direct investment of $41 million in economic development and workforce programs targeting disadvantaged communities, New York Minority and Women-Owned Business Enterprises (MWBE), and Service-Disabled Veteran-Owned Small Business (SDVOB) businesses. This investment also includes a $10 million childcare financial assistance program to support parents pursuing careers in offshore wind, in partnership with the United Way of New York State.

In addition to these commendable initiatives, Community Offshore Wind will allocate $38 million for wildlife and fisheries research, mitigation, and enhancement. This investment is in addition to the project’s recent announcement to partner with the National Oceanic and Atmospheric Administration (NOAA) on a Cooperative Research and Development Agreement, a first of its kind in the field.

RWE, as one of the largest offshore wind companies globally with nearly 2,000 offshore wind experts, is poised to make a significant impact in the United States. Over the past two decades, RWE has completed 19 offshore wind farms worldwide and recently concluded the Kaskasi offshore wind farm off the German coast.

The United States plays a pivotal role in RWE’s strategy to expand its renewables business, with a substantial offshore wind development pipeline of 6 GW across various federal seabed auctions. This includes lease areas for fixed-bottom offshore wind projects in the New York Bight and the Gulf of Mexico, as well as a lease area off the coast of northern California for the company’s first commercial-scale floating wind project. These achievements have positioned RWE as the second-largest offshore wind developer in the U.S., solidifying its commitment to sustainable energy and economic growth in the region.

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