New York takes 2.4GW of onshore renewables to backfill giga-scale hole

State's target of 70% clean power generation by 2030 jeopardised by rising costs that saw 73% of land-based projects cancelled

. New York Governor Kathy Hochul.
. New York Governor Kathy Hochul.Foto: Governor's Office of New York State

The New York State Energy Research and Development Authority (Nyserda) announced Monday provisional awards for 24 late-stage onshore wind and solar projects totalling 2.4GW, further movement towards its goal of 70% clean power generation by 2030.

“Once completed, these projects will be capable of powering hundreds of thousands of New York homes and are expected to spur billions of dollars in direct investment and create thousands of good-paying short- and long-term jobs,” Nyserda said.

Nyserda, which is overseeing the state’s energy transition, is now moving to negotiate and execute firm contracts “over the next few months”, it said.

The project awards partly replace the 8.4GW of onshore capacity lost last year after state utility regulator Public Service Commission (PSC) rejected pleas by offshore and land-based renewables developers for higher offtake prices to cover surging costs due to inflation and high interest rates.

The PSC likewise rejected offshore wind's requests for cost relief, resulting in 4GW of projects cancelled or withdrawn.

This is the seventh procurement for large-scale onshore renewables by Nyserda and the first under governor Kathy Hochul’s 10-Point Action Plan that aims to “backfill any contracted projects which are terminated”, Nyserda said.
New York will need to more than triple installed renewable capacity to meet its goals of 70% clean energy by 2030, a report by the state comptroller released last summer noted.

As of 2022, 29% of electricity generated by the state came from renewable sources, about three-quarters of this power from legacy hydro capacity.

The state will have to add 20GW of renewable capacity versus 6.5GW in place as of 2022 and the 2.2GW awarded last October.

Accelerated procurement

Nyserda has lately ramped both onshore and offshore renewables procurements to meet these targets, and Monday also released a Request for Information (RfI) for its eighth onshore renewables solicitation slated for the second quarter of this year seeking feedback on key elements of the process.

Last week, Nyserda announced an RfI for its round 5 offshore wind procurement expected this summer in part to replace the 4GW lost after the agency voided its round 3 awards due to conflict between the OEM supplier GE Vernova and developers over turbine size.

New York has seen 8GW of offshore wind capacity scrapped, leaving it with just 1.85GW towards its 9GW by 2035 mandate.

Accelerated procurement of capacity could “lead to increased challenges around supply chain logistics and local construction labour availability,” warned Rachel Lynne-Davies, director of consulting and operations at Compass Renewable Energy Consulting, on LinkedIn.

To support supply chain development, Nyserda issued a $200m tender for tier 2 and 3 offshore wind manufacturers.

“New York is solidifying its leadership role in the offshore wind industry, building the supply chain right here in the State to build the industry and drive down costs,” governor Hochul said.

The funds are part of the $500m pledged by Hochul for the sector, which includes the $300m initially offered to tier 1 supplier GE Vernoca for nacelle assembly and blade manufacturing that had been awarded as part of the round 3 procurement, but which has since been rescinded.

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Published 29 April 2024, 21:14Updated 30 April 2024, 06:34
AmericasNYSERDANew YorkKathy Hochul