The New York State Public Service Commission (PSC) issued last week an order establishing a standard and framework for the first phase of procurement of offshore wind to support the state’s goal of 2,400 megawatts (MW) of new offshore wind generation by 2030.
In the first phase of procurements, the New York State Energy Research & Development Authority will obtain approximately 800 MW of offshore wind through a solicitation to be issued in the fourth quarter of 2018, in consultation and coordination with the New York Power Authority and the Long Island Power Authority.
The PSC action authorizes NYSERDA to include commitments to project labor agreements and prevailing wages as contract requirements. The order also requires awarded offshore wind projects to consider the interests of ocean users such as commercial and recreational fishing, environmental stakeholders and coastal communities.
NYSERDA will procure Offshore Wind Renewable Energy Certificates, ORECs, from awarded facilities through the solicitations. Electric utilities and other third-party suppliers of electricity serving retail customers in New York will support the new offshore wind resources by purchasing ORECs from NYSERDA.
Awards are expected to be announced in the second quarter of 2019 and, if needed, a second solicitation will be issued in 2019.
“This action represents another major step toward establishing a clean energy future that is secure, reliable and cost-effective,” New York Gov. Andrew 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.”
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