Orsted and Equinor have signed power purchase agreements with the New York State Energy Research and Development Authority for the 880MW Sunrise Wind and 816MW Empire Wind projects, respectively.
The 25-year OREC purchase and sale agreement prices the “all-in development cost” of the projects at $83.36 per megawatt-hour (2018 prices) and at an expected average cost of $25.14/MWh, according to NYSERDA.
Governor Andrew Cuomo said: “New Yorkers know all too well the devastating impacts of climate change and the catastrophic consequences if we do not act urgently.
“By finalising the contract awards for the nation’s largest offshore wind procurement, we are realising the positive impacts these projects will have on the environment, while diversifying our economy and bringing significant economic benefits to the Empire State.”
Orsted said Sunrise Wind, which is being developed with Eversource Energy, will bring economic development by constructing an operations and maintenance hub in Port Jefferson, Long Island, investing in additional port infrastructure upgrades and establishing offshore wind training programs in the state of New York.
Sunrise Wind is also exploring transmission partnerships with the New York Power Authority and New York utility Con Edison.
The wind farm is part of the 1.7GW north-east cluster being developed by the partners, which includes the South Fork and Revolution Wind projects.
Siemens Gamesa 8MW turbines are set to feature at all three wind farms.
Orsted chief executive Martin Neubert said: “Orsted and Eversource are pleased to announce the signing of the power purchase agreement for this landmark project which will bring large-scale clean energy to New York, and we look forward to working with NYSERDA, suppliers, local communities and other stakeholders to bring Sunrise Wind to life.
“The offshore wind industry offers great opportunities for long-term industrial development, and Sunrise Wind will bring skilled jobs to the state during construction and throughout its operational lifetime.”
Equionr US president Christer Geijerstam said: “Today, Equinor is excited to join Governor Cuomo and NYSERDA in securing our commitment to delivering renewable offshore wind energy to New York and meeting New York State’s ambitious renewable energy goals.
“Equinor’s Empire Wind project is a key part of the State’s new offshore wind industry, bringing not only homegrown renewable energy, but also new jobs and substantial economic development.”