New York's Con Edison (ED.N) on Tuesday said it has broken ground on a transmission substation project, the Brooklyn Clean Energy Hub, to strengthen the region's power grid by serving as a plug-in point for future offshore wind power.
The substation, in Brooklyn's Vinegar Hill neighborhood, will serve as an interconnection point for up to 1,500 megawatts of wind power, enough to power 750,000 homes, the company said in a release.
Construction on the $810 million project is expected to commence in mid-2024, and the entire project is expected to go online before summer 2028, according to the company's website.
New York has mandated that 70% of the state's electricity come from renewable sources by 2030 and all power come from zero-emission sources by 2040.
U.S. offshore wind projects were facing inflation headwinds, supply bottlenecks and higher financing costs, which have eroded profitability of many projects, forcing some to cancel the agreements.
Rapid electrification is boosting power demand but also is straining the grid, as renewable resources struggle to replace fossil fuels that are being phased out, New York Independent System Operator said in early June.
