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Three Offshore Wind and 22 Land-Based Renewable Energy Projects Totaling 6.4 Gigawatts Will Power 2.6 Million New York Homes and Deliver 12 Percent of New York''s Electricity Needs in 2030
Projects Expected to Create Approximately 8,300 Family-Sustaining Jobs and Bring $20 Billion in Economic Development Investments Statewide, Including Developer-Committed Investments to Support Disadvantaged Communities
Advances the Nation''s First Offshore Wind Blade and Nacelle Manufacturing Facilities with the State Committing $300 Million and Attracting an Additional $668 Million in Private Funding
Supports Progress Toward New York''s Climate Act Goal to Obtain 70 Percent of the State''s Electricity from Renewable Sources by 2030
79 Percent of New York''s 2030 Electricity Needs to be Met with Renewable Energy
"New York continues to set the pace for our nation''s transition to clean energy," Governor Hochul said. "An investment of this magnitude is about more than just fighting climate change – we''re creating good-paying union jobs, improving the reliability of our electric grid, and generating significant benefits in disadvantaged communities. Today, we are taking action to keep New York''s climate goals within reach, demonstrating to the nation how to recalibrate in the wake of global economic challenges while driving us toward a greener and more prosperous future for generations to come."
U.S. Secretary of Energy Jennifer M. Granholm said, "The Department of Energy applauds the significant step that this announcement represents for building an offshore wind energy industry here in the U.S. that revitalizes domestic manufacturing and coastal economies, while advancing our clean energy future. New York is showing President Biden''s Investing in America agenda at work, and DOE looks forward to continued collaboration on project deployment, development of a robust domestic supply chain along with transmission development to help realize both our state and federal offshore wind goals."
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, "This latest and largest round of large-scale renewable energy awards is further proof that New York is, and will continue to be, a place where the renewable energy sector can thrive. This cohort of large-scale renewable energy projects reflect New York''s longstanding and ongoing priority to responsibly advance the most cost-competitive and economically viable clean energy projects in a manner that is timely and maximizes benefits for all New Yorkers."
Today''s announcement represents the first set of actions taken by the State as part of New York''s 10-point Action Plan, announced recently by Governor Hochul, offering insight into how the Governor''s Administration plans to overcome recent macroeconomic and inflationary challenges that have impacted the renewable energy sector. Today''s awards also mark the commencement of contract negotiations with the awarded parties, and the awards are conditional on successful contract execution.
Demonstrating the State''s commitment to ensuring these projects create quality, family-sustaining jobs for New Yorkers, the contracts upon full execution will include commitments to purchase certain minimum amounts of U.S. iron and steel and prevailing wage provisions for all laborers, workers, and mechanics performing construction activities. In addition, offshore wind project developers will be required to negotiate Project Labor Agreements among their construction contractors and a building and construction trade labor organization representing craft workers for the construction of the new renewable energy generation resources.
The Nation''s Largest-Ever State Investment in Offshore Wind In the most competitive offshore wind solicitation in the U.S., NYSERDA has selected three new offshore wind projects totaling 4,032 megawatts (MW) of clean energy which is expected to displace over 7 million metric tons of CO2 annually, equivalent to removing 1.6 million cars from the road each year. Additionally, the awarded projects will bring more than $15 billion in anticipated in-state spending and create more than 4,200 family sustaining jobs across Long Island, New York City and the Capital Region over the 25-year lifespan of the projects.
The three offshore wind projects include:
Together, these projects will bring tremendous benefits to New York''s economy, workforce, and environment, including:
These projects employ a mix of flexible and innovative transmission designs, including a reduced footprint in transmitting energy from offshore wind projects to New York City through high voltage direct current (HVDC) and adaptable "Meshed-Ready" offshore electrical substations. The three offshore wind projects are anticipated to enter commercial operation in 2030. The average bill impact for customers over the life of the projects will be approximately 2.73 percent, or about $2.93 per month. The average all-in development cost of the awarded offshore wind projects over the life of the contracts is $96.72 per megawatt-hour.
Today, we are taking action to keep New York''s climate goals within reach, demonstrating to the nation how to recalibrate in the wake of global economic challenges while driving us toward a greener and more prosperous future for generations to come.
President and Project Director of Community Offshore Wind Doug Perkins said, "Community Offshore Wind is honored NYSERDA has selected us as a key partner in making New York''s offshore wind plan a reality and we congratulate Governor Hochul on today''s momentum in advancing the State''s ambitious climate and clean energy goals. Our strong local roots allowed us to design programs that will ensure equitable access to the opportunity of the clean energy transition, and we look forward to immediately delivering for disadvantaged communities in New York, from creating new, good-paying jobs, to a localized supply chain and economic benefits that will last for generations to come."
Vineyard Offshore CEO Lars T. Pedersen said, "We are honored that the Hochul Administration has selected our Excelsior Wind project and thank the Governor for her continued commitment to our industry. Excelsior Wind will provide clean and affordable energy, powering both economic growth and improvements in environmental and public health. We are grateful that NYSERDA has placed its trust in our proven ability to deliver projects and look forward to continuing to work alongside with state and local government agencies, Tribal Nations, local communities, fishermen, and other stakeholders in the Empire State."
Delivering on Governor Hochul''s commitment to make New York State a hub for the U.S. offshore wind supply chain, this procurement includes continued support for offshore wind turbine manufacturing, which leverages over $2 in privately committed capital for every $1 of New York public funding.
NYSERDA is also awarding $300 million in state investment to enable the development of two supply chain facilities including nacelle manufacturing and assembly by GE Vernova, along with blade manufacturing developed by LM Wind Power Blades USA, both planned for New York''s Capital Region.
This investment has the capacity to supply almost one-third of the total regional demand for offshore wind by 2035, which will unlock $968 million in public and private funding, create 1,700 direct and indirect jobs backed by prevailing wage and project labor agreements, and result in over $3 billion in direct spending in the State. Additionally, these projects also align with available federal tax credits, enabling future savings to New York''s ratepayers.
New York''s Land-Based Renewable Energy Procurement In addition, New York also announced its latest round of conditional land-based large-scale renewable awards, which are comprised of 14 new solar projects, six wind repowering projects, one new wind project, and one return-to-service hydroelectric project, totaling a combined 2,410 megawatts – enough new renewable generation to power over 560,000 New York homes annually for at least 20 years. These projects are expected to spur over $4 billion in direct investments and create over 4,100 good-paying short- and long-term jobs across New York State.
The projects by region include:
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