Gov. Andrew M. Cuomo, D-N.Y., has announced the New York State Public Service Commission’s plan for the state’s first procurement of offshore wind.
New York has a goal of 2.4 GW of new offshore wind generation by 2030, enough to power 1.2 million New York households. This first phase of the state’s procurements includes obtaining approximately 800 MW of offshore wind by 2019.
The New York State Energy Research & Development Authority (NYSERDA) will procure approximately 800 MW of offshore wind through a solicitation issued in the fourth quarter of this year, in consultation and coordination with the New York Power Authority and the Long Island Power Authority. Awards are expected to be announced in the second quarter of 2019. If needed, a second solicitation will be issued in 2019.
Today’s action authorizes NYSERDA to include commitments to project labor agreements and prevailing wages as contract requirements for any awarded project. These provisions are designed to 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.
“This action represents another major step toward establishing a clean energy future that is secure, reliable and cost-effective,” Cuomo says. “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.”
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.
“Under Governor Cuomo and as part of this order issued by the Public Service Commission today, New York is building a viable and leading offshore wind industry with high-quality jobs for New York and the Atlantic Coast,” comments Richard Kauffman, chairman of energy and finance for New York State. “Offshore wind is a tremendous clean energy source that will not only power millions of New York homes and businesses cleanly and affordably, it will help us combat climate change and reduce our reliance on dirty fossil fuels.”
The New York State Offshore Wind Master Plan was announced earlier this year by Cuomo, who also directed NYSERDA to invest $15 million in clean energy workforce development. In June, NYSERDA was awarded a $18.5 million U.S. Department of Energy grant to lead the National Offshore Wind Research and Development Consortium, which 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 and via webinar on Monday, July 23.
Alicia Barton, president and CEO of NYSERDA, says, “Today’s announcement underscores Governor Cuomo’s unwavering commitment to ensuring offshore wind is developed responsibly, cost-effectively and in the very near future. New York has all of the assets – labor, ports and policies – required to become a global hub for this emerging industry, and we fully plan to capitalize on these strengths so that New Yorkers will reap the substantial environmental and economic benefits that offshore wind will bring.”
“Thanks to Governor Cuomo’s leadership, New York continues to be a national leader in offshore wind,” adds Jeffrey Grybowski, CEO of offshore developer Deepwater Wind. “Today’s decision by the Public Service Commission to proceed with a major procurement this year will create a new source of cost-effective clean energy and significant job opportunities for New Yorkers. As the developer of New York’s first offshore wind farm and the U.S.’ leading offshore wind company, we’re ready to play a major role in helping New York achieve the governor’s extraordinary goals for a clean energy economy.”