Long Island Power Authority Turns Down Deepwater Wind’s PPA Bid

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The Long Island Power Authority (LIPA) has turned down Deepwater Wind's bid to secure a power purchase agreement (PPA) under a 280 MW request for proposals for renewable energy.

Instead, the New York-based utility has chosen to buy 122 MW from 11 new solar projects, with the company planning another solicitation for the remaining 160 MW. However, according to the Sierra Club, that new call will not likely happen for at least another year.

In March, Deepwater Wind submitted an application to LIPA to sell more than 200 MW from its Deepwater ONE project, an offshore wind farm planned approximately 30 miles east of Montauk, N.Y. In 2013, the developer won a 30-year lease to develop the up-to-1-GW project in federal waters on the Outer Continental Shelf.

In a memo, the LIPA board notes it didn't select wind projects for the RFP "primarily because of their total cost relative to other alternatives, including financial risks inherent in those proposals."

‘We remain confident that our Deepwater ONE project will supply Northeast states with clean energy in the near future," says Deepwater Wind CEO Jeffrey Grybowski. "While we are disappointed in [the] decision, we continue to advance the project. Offshore wind is the most cost-effective source of clean energy for coastal communities in the Northeast, and Deepwater ONE is perfectly positioned to serve those communities."Â

In response to LIPA's decision, a coalition of environmental groups, including Deepwater-supporter the Sierra Club, issued a joint statement expressing disappointment that Gov. Andrew Cuomo, D-N.Y., "failed to keep his promise to bring 280 MW of new renewable energy to Long Island this year."

"While we are happy to see more solar energy business opportunities for Long Island, it's not enough to meet even half of the promised goal, and at the same time, the governor missed a critical opportunity to build a thriving new offshore wind industry in New York," the groups say.

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