The Winds of Change for Offshore Wind in New York: 2021 Year in Review

By Fred Zalcman, Director, New York Offshore Wind Alliance

2021 marks a key inflection point for the industry, as the states’ offshore wind ambitions were embraced by the incoming Biden-Harris amendment as a component of the federal government’s whole of government approach to tackling climate change.

Sailors refer to a  sailboat being “in irons” when it is facing directly into the wind and comes to a standstill , unable to maneuver. This is an apt description of the offshore wind industry going into 2021 when it seemed like it may not be able to tack to its desired destination.

Despite strong tailwinds from the states, the industry entered the year shadowed by lingering doubts as to the federal government’s commitment to advancing projects through the permitting queue, as the hold placed by former Department of Interior Secretary Bernhardt on formal permit actions, announced in August 2019 in the context of the Vineyard Wind Construction and Operation Plan (COP) approval process, stretched well into its second year. Developers responded by delaying major capital investments – in ports and harbors improvements, domestic manufacturing and supply chain commitments, and workforce development – until the permitting bottleneck resolved itself and the havoc wreaked on project delivery schedules could be sorted. Some openly questioned whether the U.S. market - already complex and uncertain – was investable.

Enter the Biden-Harris Administration. Early on, in connection with the administration’s overall efforts to tackle climate change, Interior Secretary Deb Haaland announced the federal government’s “whole of government” commitment to pursue the deployment of 30 GW of offshore wind by 2030 and completing federal permitting of 25 GW by 2025, bringing the federal government back in sync with state ambitions.  More recently, the Department of Interior issued its offshore wind roadmap, transparently laying out the federal government’s timetable for the leasing of up to seven new Wind Energy Areas (WEA) by 2025, including a significant new WEA in the shallow waters off the coast of New York and New Jersey referred to as the New York Bight.

Apart from these broad goal statements, under Director Amanda Lefton’s leadership, the Bureau of Ocean Energy Management (BOEM) undertook a staggering series of actions that has restored confidence in the U.S. market.  The Vineyard Wind COP review process was restarted and ultimately completed, marking the first time a U.S. offshore wind project has run the federal permitting gauntlet. Additionally, BOEM has issued Notices of Intent (NOI) on several additional projects, including those serving New York - Equinor’s 810-MW Empire Wind Project and Orsted’s 924-MW Sunrise Wind Project. Issuance of the NOIs represents a significant project milestone because they formally signal the federal government’s initiation of the two-year permitting process and give developers a better line of sight to project completion. And more recently, BOEM announced its COP approval for the 132-MW South Fork Wind Farm, the first utility scale offshore wind project to serve New York.

These actions were heralded by more than 100 organizations comprised of project developers, labor unions, frontline community organizations, environmental advocates and research organizations. These organizations coalesced, under NYOWA leadership, around a “unity statement” in support of the responsible development of offshore wind.

While much of the attention has been focused on Washington, New York State has been moving inexorably forward in progressing realization of its nation-leading target of 9 GW by 2035. . In January, the New York State Energy Research and Development Authority (NYSERDA) announced the results of its second offshore wind procurement, with nearly 2,500 MW awarded to two projects – Empire Wind 2 and Beacon Wind, both sponsored by Equinor, making it the largest-ever competitive solicitation for offshore wind in the U.S. Additionally, the aforementioned South Fork Wind Project secured from the Public Service Commission its Article VII authorization to construct the state portions of its transmission infrastructure bringing the power from the offshore wind farm to the Long Island grid. All told, the state has procured nearly half the overall 2035 target, providing enough clean generation to power 2.4 million homes.

Restored confidence in the U.S. offshore wind market and resumption of project development activity has already begun to unlocked billions of dollars of investment across the country. New York State is no exception.  In October, Governor Hochul announced an $86 million contract award by Orsted and Eversource, developers of the Sunrise Wind project, to Rigg Distler for the manufacture of advance foundation components at the Port of Coeymans; the initiative is slated to create 230 family sustaining jobs in the Capitol Region and Western New York. And in December, Equinor cut the ribbon on its South Brooklyn Marine Terminal project office, which will be the hub of the company’s sprawling pre-assembly and operations and maintenance activities.

As we look ahead to 2022, much more promising tailwinds are forecast. NYOWA will be focusing much of its attention on ensuring the successful announcement and execution of the New York Bight lease sale, with the potential to bring up to eight new lease areas into the mix. Immediately on the heels of the federal lease auction, NYSERDA is poised to announce its third offshore wind solicitation, maintaining a steady drumbeat of procurements needed to assure the sustained development of the offshore wind market. 

Some years from now, when offshore wind will be a more ubiquitous part of the U.S. energy landscape, 2021 will be looked back upon as the key moment when it regained its course. 

Here’s more about NY Offshore Wind: VIDEO: OFFSHORE WINDPOWER, PORTS, & JOB CREATION FOR NY