New York Offers New Offshore Wind Contracts

New York offshore wind continues to be a viable green energy source for the state in spite of recent economic challenges that threatened to sink several projects.

NY Wind Refloats OffShore Projects

New York offshore wind projects seems on the rocks only a few weeks ago. Learn how they've been relaunched and what it means for green energy.
Offshore wind energy projects in New York ran aground some time ago on a sea of troubles. Learn how they’ve been refloated on calmer tides and what it means for New York electricity consumers.

News broke at the end of February 2024 that NY awarded offshore wind contracts to two companies. This is great for all those in favor of more renewable energy in the New York electricity supply. However, clean power watchers may see this as a little confusing. That’s because these contracts were already awarded to the same companies a few years ago. So, why has New York offered offshore wind projects again? Let’s dig into the issue.

Why New York Wants Offshore Wind

Our state is pushing towards some major green energy requirements. Specifically, we are driving towards 100% clean energy by 2040. Furthermore, rather than getting power from out of state or imported fossil fuels, NY wants more home-grown energy. This not only makes New York greener, but it brings in tons of new jobs, too.

With 127 miles of coastline, offshore wind energy is a great source for New York to tap into. According to Reuters, the new projects represent power for about a million homes. Also, these offshore wind projects are the largest electric generating projects in our state in just under 40 years.

Why Contracts for Offshore Wind Were Re-Offered

NY originally awarded these offshore wind contracts back in 2019. However, after the pandemic, developers saw supply chain issues, higher interest rates, and raising inflation. By 2022 the numbers were no longer adding up for developers. In fact, our neighbors in New Jersey found contracts for offshore wind canceled. This is because developing companies found they could no longer make a profit based on their old contracts.

To avoid scrapping projects, our state allowed the energy companies to resubmit bids. In February, those bids passed the test. Of course, keeping the wind projects comes at a cost. With the new bids, the average customer will pay about 2% more on future NY electric bills. To balance the uptick in costs, wind developers must commit to $2 billion in economic aid, including in to disadvantaged communities.

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