First New York Offshore Wind Auction Set For Late 2018

The New York State Energy Research & Development Authority (NYSERDA) will procure approximately 800MW of offshore wind through a solicitation issued in the fourth quarter of 2018. 

Image for illustrative purposes only. Source: TenneT TSO GmbH

Awards are expected to be announced in the second quarter of 2019. If needed, a second solicitation will be issued in 2019. The procedure will be carried out in consultation and coordination with the New York Power Authority and the Long Island Power Authority.

This first phase of offshore wind procurement is expected to jumpstart the industry and supports the state’s overall goal to develop 2,4GW of offshore wind by 2030.

The action authorizes NYSERDA to include commitments to project labor agreements and prevailing wages as contract requirements for any awarded project. These provisions will ensure that good-paying jobs are associated with the development of offshore wind for New York State. Further, the order includes provisions to ensure that any awarded offshore wind projects consider the interests of ocean users such as commercial and recreational fishing, environmental stakeholders and coastal communities.

Through these solicitations, NYSERDA will procure Offshore Wind Renewable Energy Certificates (ORECs) from awarded facilities. Each electric utility and other third-party suppliers of electricity serving retail customers in New York will support these new offshore wind resources through the purchase of ORECs from NYSERDA.

NYSERDA estimates that by 2030, New York can attract a USD 6 billion New York industry that will support nearly 5,000 new jobs in manufacturing, installation and operation of offshore wind facilities. Nearly 2,000 of these jobs would be in operations and maintenance, providing long-term career opportunities.

“This action represents another major step toward establishing a clean energy future that is secure, reliable and cost-effective,” the New York State Governor Andrew M. Cuomo said.

”Robust offshore wind development is not only critical to meeting our clean energy and carbon reduction goals, this investment has the potential to create thousands of jobs and fuel a $6 billion industry for New York as it combats climate change.”

The New York State Offshore Wind Master Plan was announced earlier this year by Governor Cuomo and will guide the state in the development of 2,4GW of offshore wind by 2030. The governor also directed NYSERDA to invest USD 15 million in clean energy workforce development and infrastructure advancement to train workers to support the growth of the offshore wind industry. In June, NYSERDA was awarded a USD 18.5 million US Department of Energy grant to lead the National Offshore Wind Research and Development Consortium. This nationwide offshore wind research and development consortium will be supported through a public-private partnership including the offshore wind industry, utilities, research laboratories, and other states.

NYSERDA will hold a technical conference to discuss topics related to the solicitation process at The Department of Public Service’s New York City office (90 Church Street, New York) and via webinar on Monday, 23 July.