New York targets USD-6bn of in-state offshore wind expenditure

New York expects its ambitious plan to install 2,400 MW of offshore wind power capacity by 2030 to bring over USD 6 billion (EUR 4.85bn) in public and private sector expenditure to the industry, creating up to 5,000 jobs.

Governor Andrew Cuomo on Monday issued the New York State Offshore Wind Master Plan that outlines the path for the state towards reaching its 2030 installation target. The initiative is seen to be instrumental in achieving a goal of producing 50% of the state’s electricity from renewables by 2030 and lowering greenhouse gas emissions in the state by 40% by the same year.

"While the federal government continues to turn its back on protecting natural resources and plots to open up our coastline to drilling, New York is doubling down on our commitment to renewable energy and the industries of tomorrow," Governor Cuomo said.

As a first step, as announced earlier this month, the state will issue two solicitations in 2018 and 2019 to develop at least 800 MW of offshore wind projects. In line with the solicitations, NYSERDA has filed an offshore wind policy options paper with the New York State Public Service Commission containing a range of procurement options. Among them are different types of long-term fixed contracts, bundled or split power purchase agreements (PPAs), offshore renewable energy credits and utility-owned generation, allowing a utility to buy and own offshore wind farms after construction has been completed by developers.

NYSERDA believes that the joint procurement of the power generation and transmission assets from a single bidder presents “the most easily-implementable and feasible option” for the initial solicitations.

According to the plan, released following two years of research and analysis involving project developers, manufacturers, environmental organisations, business communities, the general public and others, the offshore wind industry could create 2,000 jobs in operations and maintenance (O&M), about 2,700 in manufacturing and an additional 350 in project management and development.

As much as USD 15 million will be provided by the state for training the local workforce in wind farm construction and port infrastructure development. The investment will be made through the New York State Energy Research and Development Authority (NYSERDA), which will work with Empire State Development and other state agencies in order to select the “most promising” offshore wind port infrastructure projects that will be supported. The goal of this activity will be to lure private investment in port infrastructure and supply chain activities.

(USD 1.0 = EUR 0.809)

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