Supporters of two offshore wind projects in development off Long Island say they will spark a wave of investment to make the Empire State a leader in renewable energy development.
The projects Gov. Andrew Cuomo announced July 18 are slated for completion within five years, when they will provide 1,700 megawatts of electricity. The governor also signed the New York State Climate Leadership and Community Protection Act that same day, calling for a nation-leading 9,000 megawatts of offshore wind generation by 2035.
"The environment and climate change are the most critically important policy priorities we face," Cuomo, a Democrat, said in a statement. “But cries for a new green movement are hollow political rhetoric if not combined with aggressive goals and a realistic plan on how to achieve them.”
The wind projects are designed to be an integral part of New York State’s plan to have 70% of its electricity derived from renewable sources by 2030 under the climate act that Cuomo signed. The bill also requires 100% carbon-free electricity by 2040 and reducing greenhouse gas emissions 85% overall by 2050.
Cuomo awarded contracts for the two wind farms to Norway-based Equinor and Bay State Wind LLC, which is a joint venture of Denmark’s Orsted A/S and Massachusetts-based Eversource Energy. The two projects, which would power one million homes, are projected to generate 1,600 jobs and a combined economy activity of $3.2 billion statewide, Cuomo said at the July 18 signing where he was joined by former Vice President Al Gore.
Resilience financing expert Alan Rubin, a partner with Blank Rome LLP, said that bonds will likely play a big role in funding much of the two wind projects. The bonds would need to be approved by public referendum, which Rubin said would likely face little trouble if the proposed borrowing is reasonable because many people across New York are grappling with extreme weather and energy challenges.
“Climate is a major factor and everyone experiences it directly,” said Rubin of why a ballot measure for a renewable energy project would likely receive strong support. “People are experiencing the issue and they are looking for a solution.”
Rubin said it will be vital for the state and federal government to fund large portions of the projects and provide incentives to get the private sector involved in order to keep borrowing costs in line. He noted that higher costs that will face ratepayers as the state gears up for wind and other alternative energies will also create obstacles toward a smooth execution of Cuomo’s goal.
“It will have to be done incrementally,” Rubin said. “It can’t be cost prohibitive in the beginning.”
Another wind project located near Martha’s Vineyard, Massachusetts, has encountered rough waters amid battles over permits and financing. Vineyard Wind, a joint venture of Avangrid Inc. and Copenhagen Infrastructure Partners K/S, was seeking
“There are a lot of complexities with offshore wind,” said Robert Bryce, an energy specialist at the Manhattan Institute for Policy Research. “It’s not going to be easy and it’s not going to be cheap.”
The planned 816-megawatt Empire Wind project by Equinor would supply renewable power from just east of the Rockaways in New York City and about 20 miles south of Long Island. Cuomo said the project should bring “significant and long-term” economic benefits utilizing South Brooklyn as its operations and maintenance base. Construction is anticipated to begin in 2022 with the project slated to commercial operation in December 2024.
The 880-megawatt Sunrise Wind project by Bay State Wind is supported by Con Edison Transmission and the New York Power Authority, who will support development of the project's transmission facilities. Cuomo said Orsted and Eversource are planning to co-locate a North American operations headquarters in Port Jefferson, Long Island, that will be capable of supporting Sunrise Wind and other affiliated U.S. projects. Construction on Sunrise Wind, 30 miles east of Montauk Point, Long Island, adjacent to Eversource and Orsted’s South Fork Wind Farm and Revolution Wind projects, is scheduled to commence in 2022 with an estimated completion date of May 2024.
Bryce said 1,700 megawatts from the two wind projects won’t even be enough to replace capacity that will be lost from Indian Point Energy Center, a nuclear facility in Westchester County scheduled
“Anytime you do anything in salt water it gets expensive very quick,” said Bryce, who was fellow at the Institute for Energy Research prior to joining the conservative-leaning Manhattan Institute. “It is a heavy lift.”
Anthony Figliola, vice president of Empire Government Strategies, said the Long Island wind turbines build on the state’s recent momentum with making major infrastructure investments such as redeveloping New York City’s two airports and connecting the Long Island Rail Road to Manhattan’s Grand Central Terminal. He said the state’s aggressive investments in wind energy have the potential to create an industry cluster of wind power producers and suppliers that would generate new permanent jobs to stimulate the local economy.
“New York is positioning itself as the leader of wind power in the U.S.,” said Figliola, who runs his Uniondale, N.Y.-based government relations consulting practice with former New York State Assemblyman Jerry Kremer. “This investment is just one in a long line of major capital investments the state has undertook as part of its own Marshall Plan to rebuild our aging infrastructure while putting people to work.”
