Offshore Wind Developers Rebid in NY

 

On Thursday, the New York State Energy Research and Development Authority announced several bids for offshore wind projects in a solicitation geared toward allowing developers to rebid on projects that had become economically non-viable.

“Equinor rebid its 816-MW Empire Wind 1 project after announcing a split with previous co-developer BP that will see Equinor taking full ownership of the Empire Wind lease and projects, while BP takes ownership of the Beacon Wind lease and projects,” reports Utility Dive.

BP is set to take a pre-tax impairment charge of about $600 million, while Equinor anticipates losses of around $200 million total. Some BP analysts believe that the company overpaid for its stake in Beacon Wind when it bought its stakes in the project for $1.1 billion in 2020.

Ørsted also rebid its 924-MW Sunrise Wind project in the solicitation, acquiring a 50% share from Eversource.

“If Sunrise Wind is not successful in the solicitation, the existing [Offshore Wind Renewable Energy Certificate] contract for Sunrise Wind will be cancelled per the state’s requirements, and Ørsted’s and Eversource’s 50/50 joint venture for Sunrise Wind will remain in place. In that scenario, the joint venture will evaluate its next steps,” the company said in a statement. “If the project is provisionally awarded, a new contract will be negotiated with NYSERDA under the updated terms of the current solicitation.” 

“RWE and National Grid submitted a bid for a second 1.3-GW Community Offshore Wind project, after the first was awarded a power supply contract in October,” Utility Dive added.

The rebids signal continued faith in offshore wind as a clean energy technology, but soaring costs have continued to swamp offshore wind in America. Last year, the offshore wind industry saw a wave of cancelations.

Onshore wind has begun to suffer challenges of its own. At the end of last year, European wind giant Enel lost to the Osage Tribe in Oklahoma over its illegal wind installation on tribal lands. The company was forced to remove 84 turbines on 8400 acres of land, a $300 million loss. It is the biggest legal defeat in the history of renewable energy.

 

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