NYSERDA Director discusses the state of the offshore wind industry
Jul 10, 2024
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Greg Lampman, the Offshore Wind Director at NYSERDA, dives into New York's bold plan to achieve 9 GW of offshore wind by 2035. He details the remarkable evolution of the offshore wind industry, underscoring the economic challenges and the necessity for a robust local supply chain. Lampman addresses rising costs due to market conditions while emphasizing sustainability. The conversation also highlights the adaptive strategies New York is implementing to meet its ambitious climate goals and enhance job creation in the renewable sector.
New York plans to boost offshore wind capacity from 2.8 GW to 9 GW by 2035, reflecting its renewable energy commitment.
Challenges like rising costs and supply chain issues are impacting project timelines, emphasizing the need for a coordinated industry response.
Deep dives
New York's Offshore Wind Goals
New York State aims to develop over nine gigawatts of offshore wind energy by 2035, a significant increase from the initial target of 2.8 gigawatts set in 2018. The transition reflects the state's commitment to renewable energy and its alignment with the New York State Climate Act. Offshore wind energy serves as a critical resource due to its potential for large-scale deployment and its ability to meet energy demands, especially in urban centers like New York City and Long Island. Notably, advancements in turbine technology have led to larger and more efficient machines, allowing for substantial increases in energy generation capacity.
Challenges in Offshore Wind Development
The offshore wind sector in New York faces significant challenges, particularly influenced by economic factors such as inflation and supply chain disruptions. Rising commodity prices, labor costs, and geopolitical events like the war in Ukraine have led to project delays and cancellations, with the capacity of contracted projects dropping from 6.5 gigawatts to 1.8 gigawatts. Additionally, the lack of a robust domestic supply chain for critical offshore wind components further complicates the industry’s growth. Regulatory responses include issuing a 10-point plan to support the sector, emphasizing the importance of advancing renewable energy while navigating market uncertainties.
Integrating Supply Chain and Project Development
Coordination between offshore wind developers and the supply chain is essential for ensuring project success, especially as New York seeks to promote domestic manufacturing of key components. NYSERDA is leveraging its procurement process to encourage investments in local manufacturing while ensuring that developers use these domestically produced products. This approach fosters economic growth and job creation in New York but can create challenges for developers who may need to adjust their project proposals to align with local supply capabilities. Balancing cost-effectiveness with sustainable development remains a priority, directing attention toward evolving market conditions and technological advancements.
The New York Energy and Research Development Authority's Offshore Wind Director, Greg Lampman, joins Crossroads to discuss the current state of the US offshore wind sector, and New York's plans to develop 9 GW of offshore capacity by 2035.
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