New York regulator approves plan for offshore wind solicitation of at least 1,000 MW

New York regulators gave the green light for the New York State Energy Research and Development Authority, or NYSERDA, to sometime this year issue an offshore wind solicitation for at least 1,000 MW.

The Public Service Commission's April 23 order approving NYSERDA's request said moving ahead with a solicitation would "maintain New York's trajectory in meeting its clean energy goals." Commissioner Diane Burman dissented.

The state wants to source 70% of its electricity needs from renewable energy by 2030 and to reach 100% carbon-free electricity by 2040. As part of that effort, the state is planning to develop 9,000 MW of offshore wind capacity by 2035.

Through a solicitation process that started in 2018, New York has so far awarded contracts with two offshore wind projects to deliver nearly 1,700 MW of capacity.

NYSERDA entered into a contract with Equinor ASA subsidiary Equinor Wind US LLC for the 816-MW Boardwalk Offshore Wind (Empire Wind) (Rockaway Peninsula) project. The state also awarded Eversource Energy and Ørsted A/S a contract to develop the 880-MW Sunrise Wind Offshore Farm. The two projects are scheduled for completion in 2024.

FLEXIBILITY TO REACH 2,500 MW

Gov. Andrew Cuomo in early January called on NYSERDA to do another offshore wind solicitation in 2020. NYSERDA later asked the commission for permission to conduct a procurement in 2020 for 1,000 MW or more of offshore wind, with the flexibility to evaluate a range of bids for up to 2,500 MW.

The commission granted NYSERDA's request. While some commenting on the request suggested a smaller solicitation, regulators said NYSERDA should have some flexibility.

"The unexpectedly low prices in the first solicitation, coupled with NYSERDA's expectation that critical decisions regarding manufacturing footholds will be made by many offshore wind suppliers within the next twelve months, bolsters the need to display a significant commitment for these resources," the commission said. "These early actions by the industry will likely determine manufacturing investments thereafter."

A NYSERDA representative was not immediately available April 24 to comment on timing of the solicitation.