New York to Invest $500M to Accelerate Growth in Offshore Wind Power
New York State is looking to accelerate its investment in offshore wind energy generation with Governor Kathy Hochul announcing plans for what she called “a nation-leading $500 million investment in offshore wind energy." The governor detailed the new plans during her first State of the State address saying the investment would support a plan to achieve two million climate-friendly, electrified or electrification-ready homes by 2030. The governor is calling for legislation to ensure that all new building construction in the state reaches zero emissions by 2027.
The new plan calls for direct investment in offshore wind manufacturing and supply chain infrastructure. It comes as New York prepares for the beginning of construction on the state’s first offshore wind project. The 132 MW project known as South Fork Wind Farm is being jointly developed by Orsted and Eversource. It received approval for construction and operation from the U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM) in November 2021 and is expected to be fully permitted by early 2022.
The governor said in her presentation that in the next phase of offshore energy development, New York will invest up to $500 million in the ports, manufacturing, and supply chain infrastructure needed to advance the state’s offshore wind industry. The investment is designed to ensure that New York “has the strongest offshore wind energy market along the Eastern Seaboard, enabling us to be the offshore wind supply chain hub for other projects up and down the coast.”
In addition to the direct investment, New York State will also initiate planning for a future offshore wind transmission network providing 6 GW of power to New York City to power an estimated four million homes. A cable study will identify strategic offshore wind cable corridors and access key points of interconnection to the power grid for offshore power. The longer-term efforts also includes launching a planning process for deepwater offshore sites that are seen as the next frontier in wind energy development.
"With this investment, New York will lead the nation on offshore wind production, creating green jobs for New Yorkers, and powering our clean energy future," said Governor Hochul. "I am proud to make New York a leader in offshore wind and renewable energy. We must harness the potential of offshore wind to fuel our economy forward and meet our ambitious climate goals."
The New York State Energy Research and Development Authority, NYSERDA, is also planning to launch in 2022 the next phase of offshore wind procurement. The effort is expected to result in at least 2 GW of new projects to develop offshore in New York. The governor’s goal is to add enough new wind power for at least 1.5 million homes.
New York State is working toward achieving its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030. The state’s investments to ramp up clean energy include over $33 billion in 102 large-scale renewable and transmission projects across the state with a commitment to developing 9,000 megawatts of offshore wind power generation by 2035.