Equinor And National Grid Compete For Offshore Wind Dominance In NY's Clean Energy Drive: Report

On Friday, the New York State Energy Research and Development Authority (NYSERDA) reportedly disclosed receiving bids from several energy companies, such as Equinor ASA EQNR and National Grid PLC NGG, for supplying power from three offshore wind projects in its expedited fourth solicitation.

The bid will allow developers to exit old contracts and re-offer projects at higher prices, reported Reuters.

Equinor’s spokesperson told Reuters, if the contract is awarded, “construction at South Brooklyn Marine Terminal is expected to begin in the first half of this year, first power is expected in 2026.” 

The company projects the commercial operation date to be in 2027.

As per the report, the New York solicitation came after a difficult phase in 2023 when several developers canceled old contracts to sell offshore wind power in states such as Massachusetts, Connecticut, and New Jersey due to escalating inflation, mounting interest rates, and supply chain challenges.

As offshore wind development is crucial for meeting national and state clean energy targets, New York and other states allowed developers to cancel old contracts and rebid at higher levels.

Last Thursday, Equinor secured full ownership of Empire Wind and South Brooklyn Marine Terminal lease, aligning with New York’s clean energy goals. The cash-neutral deal with BP PLC BP allowed Equinor to pursue NY’s offshore ambitions while BP took charge of Beacon Wind projects.

Following the deal signing, Equinor submitted a bid for the Empire Wind 1 project in New York’s fourth offshore wind solicitation round and said that it has also been agreed with the NYSERDA to terminate the Offshore Wind Renewable Energy Certificate (OREC) Purchase and Sale Agreement for the Beacon Wind 1 project. 

Price Action: EQNR shares are trading lower by 0.34% at $29.08 premarket on the last check Monday.  

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