New York Cancels Major Offshore Wind Projects, Hindering Renewable Energy Goals

New York has canceled three major offshore wind projects, dealing a significant blow to the state's goal of achieving 70% renewable energy by 2030 and the nascent U.S. offshore wind industry.

The New York State Energy Research and Development Authority (NYSERDA) announced that it could not finalize power purchase agreements with three developers that received conditional awards from the state in October 2023. "The shift to GE's smaller 15.5-16.5 MW turbine platform impacted the economics of the projects, including construction costs and operations," NYSERDA stated.

The cancellations came after developers and partners failed to reach final agreements due to technical and commercial complexities arising from General Electric's decision not to move forward with a planned 18 MW turbine. GE Vernova, the preferred supplier, abandoned its plans for the expected 18MW turbine, which was a key component of the projects. "GE Vernova's decision to move from its 18 megawatt Haliade-X turbine platform to a smaller turbine caused 'technical and commercial complexities' for the developers," NYSERDA explained.

The canceled projects include the 1,404 MW Attentive Energy One, the 1,314 MW Community Offshore Wind, and the 1,314 MW Excelsior Wind. These projects cumulatively represented more than 4,000 megawatts of renewable energy and were part of New York's efforts to meet its renewable energy target. The developers of these projects will now have to rely on smaller 15.5 MW turbines, which will add time and labour costs to each project.

Why this matters: The cancellation of these offshore wind projects is a significant setback for New York's renewable energy goals and the growth of the U.S. offshore wind industry. It also impacts President Biden's goal of installing enough offshore wind capacity nationwide to power 10 million U.S. homes by 2030, as the industry continues to face challenges such as inflation, higher borrowing costs, and logistical problems.

Despite this setback, NYSERDA remains committed to advancing New York's offshore wind industry and pursuing its Climate Act goals. "NYSERDA remains committed to advancing New York's offshore wind industry and will announce next steps in the near future," the agency stated. The $300 million in funding that was to go toward planned manufacturing facilities linked to the projects will now be made available through a future competitive solicitation to continue the development of the offshore wind supply chain in New York.

Key Takeaways

• NY cancelled 3 major offshore wind projects, a blow to 70% renewables by 2030 goal.
• Developers failed to reach final agreements due to GE's decision to use smaller turbines.
• The cancelled projects represented over 4,000 MW of renewable energy for NY.
• The setback will impact Biden's goal of 10 million U.S. homes powered by offshore wind by 2030.
• NYSERDA remains committed to advancing NY's offshore wind industry and supply chain.