Sunrise Wind project: Ørsted eyes complete control in bid to boost renewable energy in New York

In a significant move within the renewable energy sector, Ørsted has agreed to acquire Eversource’s 50% share in Sunrise Wind, a 924 MW offshore wind farm slated to supply power to New York. This acquisition hinges on the successful outcome of Sunrise Wind in the ongoing New York 4 solicitation for offshore wind capacity. Key to this process is the signing of an Offshore Wind Renewable Energy Certificates (OREC) contract with New York’s energy agency, NYSERDA, along with fulfilling other prerequisites like the receipt of construction and operations plan (COP) and necessary regulatory approvals.

Contingencies and Future Plans

Should Sunrise Wind not succeed in the solicitation, the existing OREC contract will be nullified as per state requirements, leaving Ørsted and Eversource’s joint venture intact. In this scenario, the partners will reassess their strategy. Conversely, if the project is provisionally awarded, negotiations for a new contract with NYSERDA will commence under the terms of the current solicitation.

Project Completion and State Renewable Goals

Poised to be the most mature offshore wind project in New York’s pipeline, Sunrise Wind, if awarded, is expected to be operational by 2026. This aligns with New York’s ambitious goal of achieving 70 percent renewable energy by 2030. The project design has already been approved by relevant state agencies, and major supplier and labor agreements are in place, setting the stage for construction to begin post-award. Final federal permits are anticipated by the summer.

Ørsted’s Strategic Vision

David Hardy, Executive Vice President and CEO of Region Americas at Ørsted, highlights the strategic importance of this acquisition: “Following a thorough risk review of our US portfolio, we’re comfortable with taking full ownership of Sunrise Wind if the project is awarded in New York 4. This transaction represents a value-accretive opportunity for Ørsted and is the best path forward for the project.”

Hardy emphasizes that Sunrise Wind, along with South Fork and Revolution Wind, reinforces Ørsted’s commitment to the northeast region of the US. These projects, combined with Ørsted’s port assets, trained workforce, and supply chain partnerships, are instrumental in building a future offshore wind hub.

Ørsted’s move to potentially acquire full ownership of Sunrise Wind signifies a major step in the renewable energy sector, particularly for New York. This project not only aligns with Ørsted’s growth strategy but also supports the broader goal of transitioning to sustainable energy sources. With its strategic approach and commitment to renewable energy, Ørsted is positioning itself as a key player in driving the green energy transition, both regionally and globally.