14November2018



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New York Kicks Off Its First Offshore Wind Auction

Image for illustrative purposes only. Image source: TenneT TSO GmbH[1]

The New York State Energy Research and Development Authority (NYSERDA) has issued a solicitation seeking 800MW or more of new offshore wind projects, which will lead to the state having its first large-scale offshore wind development contracts in place in the spring of 2019.

Announced by New York Governor Andrew M. Cuomo, the solicitation[2] marks the initial step toward the state goal of 2,400MW of offshore wind by 2030 and accelerates New York’s progress towards Governor Cuomo’s mandate for 50% of the state’s electricity to come from renewable sources by 2030.

NYSERDA will award 25-year contracts for projects ranging from approximately 200MW to approximately 800MW, and has room to award even larger quantities if sufficiently attractive proposals are received. Each proposer is also required to submit at least one proposal of approximately 400MW.

Under the New York State Public Service Commission’s July 2018 Order, which adopted New York’s 2,400MW goal and set the framework for the first phase of solicitations, NYSERDA will award proposals according to both the price offered by the proposer as well as economic benefits and project viability. Through these solicitations, NYSERDA will procure Offshore Wind Renewable Energy Certificates (ORECs) from awarded facilities.

Prospective proposers are encouraged to submit a Notice of Intent to Submit Proposal by 20 December 2018. Bids are due in February 2019, with contract awards anticipated for Spring of 2019.

The contracts are expected to be executed thereafter to take advantage of expiring federal tax credits, NYSERDA stated.

The NYSERDA solicitation includes first-of-a-kind requirements for wage and labor agreements by offshore wind developers to ensure that the projects deliver high-quality jobs for New York workers.

To facilitate the ability of New York businesses to participate in the delivery of these projects, NYSERDA will host the New York Offshore Wind Supplier Forum on 15 November 2018 in New York City to connect local suppliers and service providers to global offshore wind developers and manufacturers.

According to the press release released by the New York State Governor’s office, offshore wind is expected to bring an estimated USD 6 billion of investments to New York that will support approximately 5,000 highly-skilled new jobs in manufacturing, installation and operation of offshore wind facilities and nearly 2,000 jobs in long-term operations and maintenance.

References

  1. ^New York Kicks Off Its First Offshore Wind Auction (www.offshorewind.biz)
  2. ^the solicitation (portal.nyserda.ny.gov)

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