Efforts to build new wind farms in upstate New York near Albany, including at the Port of Coeymans, took a major hit when General Electric wasn’t able to produce the turbines needed for three key projects. Photo: Chris Rahm/Oceans 8 Films
By POLITICO’s Marie J. French
New York’s signature offshore wind projects meant to boost confidence in the industry are being scrapped, a major hit to the industry in the state and the nation.
The decision is another setback to New York’s aspirations to achieve 70 percent renewable energy by 2030 and be a hub for the nascent industry in the United States. It will also be another challenge for President Joe Biden’s already likely out-of-reach 30 gigawatt goal for offshore wind by 2030.
In October 2023, Danish wind power developer Ørsted announced that it was canceling its Ocean Wind 1 and Ocean Wind 2 projects in southern New Jersey due to financial unfeasibility. The company cited a number of reasons for the decision, including: Supply chain issues, Inflation, Inability to secure enough government tax credits, Rising interest rates, and Delays in the project schedule.
REGIONAL SETBACK, WITH GE GETTING BLAME — POLITICO’s Marie J. French and Ry Rivard: In the rush to save New York’s offshore industry from collapse last fall, Gov. Kathy Hochul’s administration bet big on three new wind farms — and even bigger on General Electric, a blue chip American company founded in Schenectady in 1892.
A win would be just the kind the Biden administration is looking for: Pairing clean energy with union jobs and domestic manufacturing.
But the bet was a losing one.
New York’s projects were key to President Joe Biden meeting his energy goals for the nation. The struggles of projects in the Northeast during his administration are a major setback for the industry and the woes could be much worse if former President Donald Trump, who is openly hostile to offshore wind, wins this fall.
For months, it’s been clear GE Vernova, a spinoff of GE, couldn’t deliver the crucial parts all three wind farms were forced to use. The company wanted the three wind developers to buy more smaller turbines. That blew up the balance sheet for the wind projects because each extra turbine would require massive underwater foundations, more labor, and availability of specialized ships, which are already scarce.
The irony of GE’s troubles was that it was supposed to be a panacea for the offshore wind industry’s supply chain issues. The company proposed building two factories along the Hudson River in the Albany area to make blades and nacelles — the inner guts of the turbine that transform the energy from the spinning blades into electricity.
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