New York Approves Plan for Second Offshore Wind Solicitation of Up To 2.5 Gigawatts

The New York Public Service Commission on April 23 authorized the State Energy Research and Development Authority to issue a solicitation for 1 gigawatt or more of offshore wind capacity in 2020, in order to maintain the state’s trajectory in meeting its clean energy goals. The authorization allows the flexibility to evaluate a range of bids for up to 2.5 gigawatts of capacity. The first solicitation held last year resulted in contracts for 1.7 gigawatts of projects expected to come online by 2024. Last year, New York quadrupled its offshore wind goal to 9 gigawatts by 2035.

In January, NYSERDA requested authorization for the additional procurement, pointing to the first solicitation results and recent cost trends in the industry as further evidence of needed action. The initial procurement resulted in offshore renewable energy certificate, or OREC, prices that were about 40 percent less than the projections in the 2018 Offshore Wind Master Plan. The approved projects are priced competitively relative to recent results from New Jersey and several New England states, according to NYSERDA. The projects also offer opportunities for significant new port infrastructure investments, public-private workforce training commitments, and job opportunities.

The New York Offshore Wind Alliance applauded the approval, calling it the largest solicitation for offshore wind capacity in the U.S. The group said that the move will help ensure that New York is “able to take maximum advantage of expiring federal tax credits, limited offshore lease areas, and the developing offshore wind supply chain.”

The order follows a final supplemental environmental review, approved on April 1, analysing the potential impacts associated with the procurement of up to 1.8 gigawatts of additional offshore wind generation in the near term. The review builds on the analysis that NYSEDA used to evaluate the 2.4-gigawatt target in the commission’s 2018 order establishing offshore wind standard and framework for the Phase 1 procurement.

To maximize the potential for long-term investments by the burgeoning U.S. offshore wind industry, New York must provide market certainty and demonstrated commitment toward the achievement of is renewable energy goals, according to NYSERDA. Further, there is a need to act quickly, NYSERDA noted, given the competition to secure existing lease areas as neighboring states are moving to accelerate their offshore wind markets to a now-combined 26-gigawatt regional market.