LS Power’s Rise Light & Power Offshore Wind Development Project Selected as Part of Nation’s Largest-Ever Investment in Renewable Energy

Governor Kathy Hochul today announced the largest state investment in renewable energy in United States history, demonstrating New York’s leadership in advancing the clean energy transition. The conditional awards include three offshore wind and 22 land-based renewable energy projects totaling 6.4 gigawatts of clean energy, enough to power 2.6 million New York homes and deliver approximately 12 percent of New York’s electricity needs once completed. When coupled with two marquee offshore wind blade and nacelle manufacturing facilities, this portfolio of newly announced projects is expected to create approximately 8,300 family-sustaining jobs and spur $20 billion in economic development investments statewide, including developer-committed investments to support disadvantaged communities. Today’s announcement supports progress toward New York’s goal for 70 percent of the state’s electricity to come from renewable sources by 2030 – and nine gigawatts of offshore wind by 2035 – on the path to a zero-emission grid as required by the Climate Leadership and Community Protection Act. Following these awards, New York will now have enough operating, contracted, and under development renewable energy projects to supply 79 percent of the state’s 2030 electricity needs with renewable energy.

“New York continues to set the pace for our nation’s transition to clean energy,” Governor Hochul said. “An investment of this magnitude is about more than just fighting climate change – we’re creating good-paying union jobs, improving the reliability of our electric grid, and generating significant benefits in disadvantaged communities. Today, we are taking action to keep New York’s climate goals within reach, demonstrating to the nation how to recalibrate in the wake of global economic challenges while driving us toward a greener and more prosperous future for generations to come.”

U.S. Secretary of Energy Jennifer M. Granholm said, “The Department of Energy applauds the significant step that this announcement represents for building an offshore wind energy industry here in the U.S. that revitalizes domestic manufacturing and coastal economies, while advancing our clean energy future. New York is showing President Biden’s Investing in America agenda at work, and DOE looks forward to continued collaboration on project deployment, development of a robust domestic supply chain along with transmission development to help realize both our state and federal offshore wind goals.”

Once in service, the awarded offshore wind and land-based renewable energy projects will:

• Produce approximately 19 million megawatt-hours of new renewable energy per year, enough to power more than 2.6 million New York homes.
• Reduce greenhouse gas emissions by 9.4 million metric tons annually, the equivalent of taking more than 2 million cars off the road every year.
• Provide public health benefits resulting from reduced exposure to harmful pollutants—including fewer episodes of illness and premature death, fewer days of missed school or work, less disruption of business, and lower health care costs.
• Deliver a host of benefits to disadvantaged communities in line with the Climate Act goals, with over $3.5 billion in commitments to disadvantaged communities made by developers.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “This latest and largest round of large-scale renewable energy awards is further proof that New York is, and will continue to be, a place where the renewable energy sector can thrive. This cohort of large-scale renewable energy projects reflect New York’s longstanding and ongoing priority to responsibly advance the most cost-competitive and economically viable clean energy projects in a manner that is timely and maximizes benefits for all New Yorkers.”

Today’s announcement represents the first set of actions taken by the State as part of New York’s 10-point Action Plan, announced recently by Governor Hochul, offering insight into how the Governor’s Administration plans to overcome recent macroeconomic and inflationary challenges that have impacted the renewable energy sector. Today’s awards also mark the commencement of contract negotiations with the awarded parties, and the awards are conditional on successful contract execution.

Demonstrating the State’s commitment to ensuring these projects create quality, family-sustaining jobs for New Yorkers, the contracts upon full execution will include commitments to purchase certain minimum amounts of U.S. iron and steel and prevailing wage provisions for all laborers, workers, and mechanics performing construction activities. In addition, offshore wind project developers will be required to negotiate Project Labor Agreements among their construction contractors and a building and construction trade labor organization representing craft workers for the construction of the new renewable energy generation resources.

The Nation’s Largest-Ever State Investment in Offshore Wind
In the most competitive offshore wind solicitation in the U.S., NYSERDA has selected three new offshore wind projects totaling 4,032 megawatts (MW) of clean energy which is expected to displace over 7 million metric tons of CO2 annually, equivalent to removing 1.6 million cars from the road each year. Additionally, the awarded projects will bring more than $15 billion in anticipated in-state spending and create more than 4,200 family sustaining jobs across Long Island, New York City and the Capital Region over the 25-year lifespan of the projects.

The three offshore wind projects include:

• Attentive Energy One (1,404 MW) developed by TotalEnergies, Rise Light & Power and Corio Generation. The project includes a novel fossil repurposing plan in Queens, which seeks to retire fossil fuel power generation in the heart of New York City and transition the current workforce to clean energy jobs.
• Community Offshore Wind (1,314 MW) developed by RWE Offshore Renewables and National Grid Ventures. The project includes utilization of new grid interconnection being developed by Con Edison in downtown Brooklyn, made possible by the Public Service Commission Order Approving Cost Recovery for Clean Energy Hub to maximize delivery of clean electricity into New York City.
• Excelsior Wind (1,314 MW) developed by Vineyard Offshore (Copenhagen Infrastructure Partners). The project includes proposed cable route options providing robust energy deliverability to Long Island, leveraging the electric grid expansion provided through the Long Island Public Policy Transmission Need outcome.

Together, these projects will bring tremendous benefits to New York’s economy, workforce, and environment, including:

• More than $85 million to support wildlife and fisheries research, mitigation, and enhancement.
• Nearly $300 million in commitments to Minority and Women Owned Business Enterprises (MWBEs) and Service-Disabled Veteran Owned Businesses (SDVOBs).
• Over $100 million in commitments to train New York’s workforce to build and service offshore wind projects.
• Billions of dollars in public health benefits resulting from reduced exposure to harmful pollutants—including fewer episodes of illness and premature death, fewer days of missed school or work, less disruption of business, and lower health care costs.

These projects employ a mix of flexible and innovative transmission designs, including a reduced footprint in transmitting energy from offshore wind projects to New York City through high voltage direct current (HVDC) and adaptable “Meshed-Ready” offshore electrical substations. The three offshore wind projects are anticipated to enter commercial operation in 2030. The average bill impact for customers over the life of the projects will be approximately 2.73 percent, or about $2.93 per month. The average all-in development cost of the awarded offshore wind projects over the life of the contracts is $96.72 per megawatt-hour.

For more information, please see https://www.governor.ny.gov/news/governor-hochul-announces-nations-largest-ever-state-investment-renewable-energy-moving.