From the Brink to Breakthrough: The Resurgence of Empire Wind I & Sunrise Wind in New York's Offshore Wind Journey

The Power Purchase Agreement (PPA) awards in 2024 for the Empire Wind I and Sunrise Wind projects mark a watershed moment for the U.S. offshore wind industry. Despite facing significant challenges in 2023, including the potential cancellation of these projects, their revival not only underscores the resilience of the U.S. renewable sector but also signals the industry's commitment to New York's clean energy and climate objectives.

Image sourced from Empire Wind website & it credits Jan Arne Wold/Woldcam/Equinor.

A Turbulent 2023

The previous year, 2023, was a test of endurance for the Empire Wind I and Sunrise Wind projects. Developers faced a significant hurdle when New York State declined their request to amend their PPAs, citing financial concerns and potential impacts on ratepayers. This led to a decisive yet risky move by the developers to cancel the PPAs, plunging the future of these projects into uncertainty.

This move was seen as highly risky, given the substantial investment and the strategic importance of these projects to New York's renewable energy goals. The cancellation of the PPAs posed a real possibility that the projects could be scrapped altogether, setting back the state's ambitions to be a leader in offshore wind energy and to achieve its aggressive climate targets.

Image sourced from Ørsted website - Sunrise Wind Project for New York.

The Strategic Revival

In response to the initial setbacks, a series of strategic negotiations and reorganizations ensued amongst the various stakeholders to bring these projects back from the brink. Both projects experienced major restructuring from their developers. For Empire Wind I, Equinor took full ownership from their JV partner BP, meanwhile Ørsted similarly acquired 100% ownership of the Sunrise Wind project from their original JV partner Eversource. With both projects now under the sole governance of their respective developers, a revised strategy could be implemented for the resubmission of the project’s PPAs.

Economic Promise of Offshore Wind for New York

These projects are part of New York's broader strategy to lead the U.S. in offshore wind capacity, with more than $8.9 billion anticipated in in-state spending and the creation of over 5,200 jobs. Hence, the stakes were high not only for the developers, who risked a significant loss on their initial investment but also for the state, as these projects are integral to New York's plans to generate a significant portion of its electricity from renewable sources by 2030.

Charting the Course for 2024 and Beyond

The resilience and strategic pivot displayed by the Empire Wind I and Sunrise Wind projects offer valuable lessons in the pursuit of renewable energy goals. The restructuring, re-bidding, and ultimate re-award of the PPAs for these two critical projects shows that, despite the naysayers, the collaboration and determination to leverage offshore wind in the U.S. is as strong as it’s ever been, setting a positive example for the industry's future.

As we continue to navigate the challenges and opportunities of building a sustainable energy future, these projects serve as inspiring examples of what can be achieved through perseverance, collaboration, and a shared vision.

For more information on how our consultancy firm can assist you with the development of renewable energy, contact us at info@orr-renewables.com.