U.S. Interior Completes Environmental Review of 2.1-Gigawatt Wind Project Off New York

The Bureau of Ocean Energy Management on Sept. 11 announced the completion of its environmental review of the proposed Empire Wind Farm Project off New York. The proposal, a joint venture of Equinor ASA and bp plc, consists of Empire Wind 1 and Empire Wind 2, which together are expected to generate up to 2,076 megawatts of energy, capable of powering more than 700,000 homes.

The New York State Energy Research and Development Authority (NYSERDA) selected the 816-megawatt Empire Wind 1 Project in July 2019 and the 1,260-megawatt Empire Wind 2 Project in January 2021 to develop offshore wind farms. The projects would contribute to New York’s goal of 9 gigawatts of offshore wind energy generation by 2035, as outlined in the 2019 Climate Leadership and Community Protection Act.

The two projects would be electrically isolated and independent from each other, and connect to the onshore electrical grid on Long Island. The final environmental impact statement incorporates stakeholder feedback received in response to the draft review issued in November 2022. The bureau plans to issue a decision on whether to approve the project, and if so, identify conditions of approval, this fall.

As projects pass through the development phase, developers are tackling challenges including construction risk, financing, and transmission requirements. In June, major offshore wind developers asked New York regulators to consider amendments to their power purchase agreements to account for inflation and interconnection costs. The requests apply to four projects totaling 4,230 megawatts including Empire Wind being developed by the Equinor-bp partnership. The developers seek mechanisms comparable to those included in the third offshore wind solicitation to account for unanticipated, extraordinary inflation and other macroeconomic events since the start of the pandemic that threaten the viability of the nascent offshore wind industry.

Subsequently, NYSERDA issued an addendum to its latest offshore wind solicitation, offering another opportunity for updated pricing to ensure the most competitive award group. The move follows guidance issued by the Internal Revenue Service regarding the eligibility for tax credits under the 2022 Inflation Reduction Act. NYSERDA set a deadline of Aug. 24 for proposers to respond and expects to make an award announcement in the fourth quarter of this year. Originally, the deadline for the solicitation was Jan. 26, 2023, which drew a strong response with 100 proposals.