Gov. Hochul pledges $500 million to build out New York’s offshore wind infrastructure
During her maiden State of the State address, New York Governor Kathy Hochul pledged to invest $500 million in the ports, manufacturing, and supply chain infrastructure needed to advance New York’s offshore wind industry.
Hochul, who ascended to the statehouse last August following Andrew Cuomo’s resignation, struck a similar tone to her predecessor by framing the renewable energy investment as a means to revitalize New York’s economic prospects.
According to Hochul, the plan will create more than 6,800 direct jobs and add more than 4.3 GW of energy, representing half of New York’s 2035 goal. The Governor’s plan for offshore wind will support more than 6,800 jobs, generate a combined economic impact of $12.1 billion statewide, and more than 4.3 GW of energy, leveraging private capital to deliver more than $2 billion in economic activity while creating more than 2,000 jobs. The investment is also envisioned to enable the state to serve as a supply chain hub for other projects along the East Coast, the governor said.
“With this investment, New York will lead the nation on offshore wind production, creating green jobs for New Yorkers, and powering our clean energy future,” Hochul said. “I am proud to make New York a leader in offshore wind and renewable energy. We must harness the potential of offshore wind to fuel our economy forward and meet our ambitious climate goals.”
The succinct, 33-minute speech – which stands in stark contrast to Cuomo – was not without some news-making elements. Hochul said the New York State Energy and Research and Development Authority (NYSERDA) – which administers New York’s renewable energy program – will launch its next offshore wind procurement in 2022, which is expected to result in at least 2 GW of new projects. NYSERDA will couple this procurement with the $500 million offshore wind infrastructure investment to obtain maximum leverage, pledged the governor.
New York will also begin planning an offshore wind transmission network that will be able to deliver at least 6 GW of offshore wind energy directly into New York City while minimizing onshore and ocean floor impacts. State agencies will conduct a New York State Cable Corridor Study to identify strategic offshore wind cable corridors and access key points of interconnection to the grid. Also, NYSERDA will start work on a new plan to further development its offshore wind development potential. Building on its Offshore Wind Master Plan, NYSERDA will initiate a new Master Plan 2.0: Deep Water
The chart below shows RCG’s forecast for offshore wind commission activity for projects with renewable energy procured by New York.
Lastly, Hochul used the occasion to provide an update on the 130 MW South Fork Wind Farm, the state’s first offshore wind farm. A joint venture of Danish firm Orsted AS and Eversource Energy, the project will begin construction early this year, the governor said.
Contact the RCG team for advisory services related to New York offshore wind.