RWE awarded 1.3 GW offtake contract in New York

31 October 2023

New York State governor Kathy Hochul announced on 24 October that RWE’s Community Offshore Wind, a joint venture with National Grid Ventures, has been provisionally awarded a 1.3 GW offtake contract as part of the State’s third solicitation for offshore wind. The project will be developed as the first of multiple phases located within RWE’s 3.2 GW seabed lease in the New York Bight (the RWE share is 2.3 GW), acquired during a federal auction by the Bureau of Ocean Energy Management in 2022.

RWE’s is one of three that New York State Energy Research and Development awarded on the day. It indicated that the weighted average strike price for the award group is $145.07 per MWh in nominal dollars. In accordance with the terms and conditions that may be included in the final contract, these prices are subject to additional adjustments such as those based on certain price indexes, interconnection costs and qualifying federal support.

The first phase of the project is expected to reduce New York’s electricity system-related carbon emissions by up to 5 % from the New York Independent System Operator 2031 baseline scenario.

Community Offshore Wind is poised to accelerate New York’s progress toward ambitious climate and energy goals. The project is expected to generate $3.3 billion in incremental economic benefits for New York, committing $530 million in expenditures and labour to disadvantaged communities over the total project lifetime.

As part of the offtake award from NYSERDA, Community Offshore Wind will play a significant role in strengthening the domestic supply chain. This includes a commitment to purchasing New York made blade and nacelles, in partnership with General Electric.

The project will also contribute toward developing the State’s offshore wind workforce, with a direct investment of $41 million in economic development and workforce programmes designed to favour disadvantaged communities, including a $10 million childcare financial assistance programme to support parents who are working in and training for offshore wind careers, in partnership with United Way of New York State.

Community Offshore Wind will also dedicate $38 million in wildlife and fisheries research, mitigation, and enhancement. This is in addition to the project’s recent announcement to partner with the National Oceanic and Atmospheric Administration (NOAA) on a first of its kind Co-operative Research and Development Agreement.

Image courtesy of RWE

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