The New York Power Authority (NYPA) has announced a power purchase agreement (PPA) for a 290 MW Invenergy project to be constructed in Steuben County, N.Y.
NYPA’s board of trustees approved the award of a 20-year PPA to Canisteo Wind Energy LLC for the energy, capacity and renewable energy credits (RECs) generated from the wind farm, to be developed and operated by Invenergy.
Under New York’s Clean Energy Standard, utilities and other energy suppliers are required to obtain a targeted number of RECs each year to help finance new renewable energy sources. The Steuben County project, which could power 113,000 homes annually, is expected to be in service by the end of 2020.
“NYPA is eager to move forward with its first long-term supply contract with a private-sector utility-scale renewable company,” says Gil C. Quiniones, NYPA’s president and CEO. “Accelerating our acquisition of renewable energy for the benefit of our customers via public-private partnerships is the way to go.”
The agreement will also further advance Gov. Andrew M. Cuomo’s recently announced Green New Deal. In his 2019 State of the State address, Cuomo challenged New York to ramp up its commitment to clean energy and achieve 70% of the state’s electricity needs with renewable sources by 2030 in an effort to achieve a 100% carbon-free system by 2040.
The award, which is a result of a 2017 competitive bid solicitation, will be NYPA’s first transaction for a large-scale renewable project. The project was originally selected for a New York State Energy Research and Development Authority (NYSERDA) award, but transitioning the contract to NYPA will allow the authority to deliver cost-savings and price stability to customers, who will have the opportunity to enter into bilateral agreements for energy, capacity and RECs from the project.
The agreement builds on NYSERDA’s announcement of awards to 19 other large-scale renewable energy projects. The awards were the second in a series of annual NYSERDA procurements to develop dozens of large-scale renewable energy projects under the Clean Energy Standard.
The Canisteo Wind Farm will be built on approximately 25,000 acres of private land being leased in Steuben County in the Southern Tier. The Canisteo site has been in development for several years and is near Invenergy’s operating 16 MW Marsh Hill Wind Farm, which began operations in 2014. According to NYPA, the new wind farm is expected to create an estimated 140 construction jobs and generate about $2.5 million per year in tax payments to the area.
Invenergy currently has more than 220 MW of operating wind projects in the state of New York, with another 1,000 MW of wind, solar and battery storage projects in development across the state.