According to a recent article from Politico, New York State has decided not to move forward with three major offshore wind-energy projects. This decision came after General Electric Vernova (GE.N) altered the turbine design, which the state said “materially altered” the original plans.
NYSERDA, the state authority in charge of the deals, announced Friday that no final agreements could be reached with the three projects that received provisional awards in October 2023. Those bids were all linked to major supply chain investments by General Electric and a larger turbine it planned to build that was aimed at boosting the region’s renewable energy portfolio.
“Subsequent to the provisional award announcement, material modifications to projects bid into New York’s third offshore wind solicitation caused technical and commercial complexities between provisional awardees and their partners, resulting in the provisionally awarded parties’ inability to come to terms,” NYSERDA wrote in an announcement.
https://www.politico.com/news/2024/04/19/new-york-offshore-wind-canceled-00153319
This development is a significant setback for New York’s renewable energy goals, as the state aims to achieve 70 percent renewable energy by 2030. The projects were provisionally awarded in October 2023 but failed to reach final contract agreements due to “technical and commercial complexities” that arose after GE Vernova’s change in turbine design.
In February, POLITICO’s E&E News reported that GE didn’t plan to move forward with an 18 megawatt turbine. NYSERDA confirmed that was the main reason no final awards were made. A smaller turbine means a project would need more individual turbine locations to deliver the same power — and the costs would have been higher.
NYSERDA had also tentatively awarded $300 million to GE Vernova and LM Wind Power for investments in nacelle and blade manufacturing at new facilities along the Hudson River near Albany. That money will be made available through a new competitive solicitation, according to the authority.
https://www.politico.com/news/2024/04/19/new-york-offshore-wind-canceled-00153319
The three projects affected are the Attentive Energy One project, developed by TotalEnergies, Rise Light & Power, and Corio Generation; the Community Offshore Wind project, developed by RWE Offshore Renewables and National Grid Ventures; and the Excelsior Wind project, developed by Vineyard Offshore with backing from Copenhagen Infrastructure Partners.
But those would now need to rely on smaller 15.5 MW turbines — which means the developers would have needed to buy more and install more massive underwater foundations to put each turbine atop. As a result, it adds time and labor costs to each project.
https://www.politico.com/news/2024/04/19/new-york-offshore-wind-canceled-00153319
This situation is a major blow to the offshore wind industry and to New York’s renewable energy aspirations. It also highlights the challenges faced by large-scale renewable energy projects in the United States, including high costs and regulatory hurdles.
Environmental advocates are alarmed by the challenges facing the industry. Offshore wind is key to reaching New York’s goal of 70 percent renewable energy sources by 2030, along with other longer-term targets. But there is growing evidence that the mandate will be hard to reach.
“We are very concerned about not meeting the climate goals,” Adrienne Esposito, executive director of the Citizens Campaign for the Environment, said before NYSERDA’s announcement. “All three of these are in a holding pattern and we need a flight plan.”
https://www.politico.com/news/2024/04/19/new-york-offshore-wind-canceled-00153319
For more detailed information, you can refer to the full article on Politico.
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