New York Opens Offshore Wind Solicitation | Offshore Wind - Offshore WIND
New York Opens Offshore Wind Solicitation | Offshore Wind
New York Opens Offshore Wind Solicitation
The New York State Energy Research and Development Authority (NYSERDA) has launched expedited solicitations for offshore wind and land-based renewable projects as part of New York’s 10-Point Action Plan to bolster the State’s large-scale renewable industry.
The expedited solicitations are said to support progress toward achieving New York’s Climate Leadership and Community Protection Act (Climate Act) goals to obtain 70 per cent of the State’s electricity from renewable sources by 2030 and develop 9 GW of offshore wind by 2035.
The solicitations, initially announced by New York Governor Kathy Hochul earlier this month, encourage all project developers, including those that previously petitioned the New York State Public Service Commission for financial relief and new market entrants to compete in the solicitation process.
Participants will benefit from streamlined bid requirements, said NYSERDA. As part of the solicitations, NYSERDA included several provisions from the latest rounds of renewable energy procurements such as inflation indexing, labor provisions, stakeholder engagement requirements, disadvantaged community commitments, agricultural land preservation, and related priorities.
Final proposals for the offshore wind solicitation will need to be submitted by 25 January 2024, with award announcements expected to be made in February 2024.
For the land-based renewables auction, eligibility requirements are due on 21 December and final proposals on 31 January 2024. Award announcements are expected by the end of April 2024.
The accelerated solicitations are part of New York’s 10-Point Action Plan, unveiled in October, which details a series of benchmarks and activities slated for the coming months, offering insight into how the Governor’s Administration plans to overcome recent macroeconomic and inflationary challenges that have impacted the renewable energy sector.
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“The renewable energy industry is encouraged by New York’s speedy issuance of solicitations for renewable energy projects, both offshore wind power and land-based wind and solar power, knowing that companies are looking forward to competing for these contracts,” said Anne Reynolds, Alliance for Clean Energy New York Executive Director.
“Moving ahead with projects will bring construction jobs, local tax revenue, and clean electricity. I applaud New York’s fast action, because this sense of urgency is exactly what is needed to bring infrastructure projects to construction and achieve clean energy and climate goals.”
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Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.