In a significant challenge, the New York State Energy Research and Development Authority (NYSERDA) has rescinded final awards for three major offshore wind projects. This decision disrupts New York's strategy to boost its renewable energy capacity by over 4 GW, part of a broader ambition to achieve 9 GW by 2035. The affected projects include:
- 1.4 GW Attentive Energy One: A joint effort by TotalEnergies, Corio Generation, and LS Power.
- 1.3 GW Community Offshore Wind: Developed by RWE and National Grid Ventures.
- 1.3 GW Excelsior Wind: Led by Copenhagen Investment Partners.
Technical Shifts and Challenges: The cancellations originated from a substantial technology shift, with developers moving from the initially planned 18 MW to a smaller 15.5/16.5 MW turbine platform, which led to significant technical and commercial challenges.
Impact on Manufacturing: Additionally, NYSERDA has pulled back $300 million in provisional funding for GE Vernova and LM Wind Power, which was set to bolster nacelle and blade manufacturing in New York’s Capital Region—a critical component of the state's offshore wind supply chain.
Market Rebound and Future Prospects: Despite these hurdles, NYSERDA is actively supporting other initiatives to maintain momentum in the offshore wind sector. Notable ongoing negotiations include the 810 MW Empire Wind 1 project with Equinor and the 924 MW Sunrise Wind project with Orsted.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
Click to know more about Enerdatics' Renewable Energy M&A, Finance, PPA, and Projects databases.