Ørsted A/S and Eversource Energy made a final investment decision to move ahead with the 924-MW Sunrise Wind offshore wind development after the US Bureau of Ocean Energy Management approved the project.

"New York is already home to the trailblazing South Fork Wind project, and with Sunrise Wind we will build on that foundation, broadening the economic benefits of offshore wind while delivering far more clean renewable power," Ørsted North America CEO David Hardy said in a March 26 statement.

"We are poised and ready to start constructing the transmission system to connect Sunrise Wind's clean power to the New York electric grid," Eversource Chairman, President and CEO Joseph Nolan added.

The New York State Energy Research and Development Authority (NYSERDA) conditionally awarded Sunrise Wind a 25-year Offshore Wind Renewable Energy Certificate contract in February in the state's fourth offshore wind solicitation. The weighted average all-in development cost of the newly awarded offshore wind projects over the life of the contracts is $150.15/MWh, with final contract prices still to be negotiated.

Ørsted agreed to buy out Eversource's 50% stake in Sunrise Wind after both companies took billion-dollar impairments related to the project for 2023 following the New York Public Service Commission's rejection of a petition to increase the negotiated $110.37/MWh offtake price in October 2023. The new contract with NYSERDA will help Sunrise Wind, which is expected to begin operations in 2026, mitigate skyrocketing prices that have plagued US offshore wind development.

Ørsted's acquisition will not close until after the revised NYSERDA contract is approved. Eversource will, under contract, manage onshore construction.

"The Interior Department's approval of the seventh offshore wind project marks another substantial step towards fulfilling our clean energy goals," Interior Secretary Deb Haaland said in a separate release.

The Biden administration aims to authorize 30 GW of offshore wind capacity by 2030.