New York on Tuesday issued its much-anticipated request for proposals (RFP) for as much as 2.5 gigawatts of offshore wind capability, establishing the U.S. market to have at the least yet one more huge venture — and maybe a number of — in its pipeline by the top of the yr.
New York additionally put out a solicitation for 1.5 gigawatts of onshore renewables; put collectively, the 2 procurements symbolize the biggest clean-energy solicitation in U.S. historical past, state officers stated.
In a twist, offshore builders shall be required to accomplice with a neighborhood port to assist construct any profitable tasks, as New York competes aggressively with New Jersey, Connecticut and different states to draw offshore wind jobs and manufacturing amenities.
The state is providing $200 million in public funding to improve its port infrastructure for the approaching East Coast offshore wind growth, to be paired with the identical quantity of personal funding. Final yr 11 ports have been pre-qualified for the funding, starting from smaller websites on Lengthy Island that might function hubs for working tasks to bigger amenities in Brooklyn and alongside the Hudson River that would probably host factories.
Final month New Jersey introduced a plan to construct an offshore wind port on a man-made island close to a PSEG nuclear plant alongside the Delaware River, which may probably develop to cowl 150 acres and attract $400 million of funding. No main offshore wind factories have but been introduced within the U.S., although many within the trade are assured they may come.
New York concluded its first aggressive offshore wind solicitation one yr in the past, awarding 1.7 gigawatts of capability to 2 enormous tasks backed by Denmark’s Ørsted and Norway’s Equinor. As well as, Ørsted and its utility accomplice Eversource have a contract to promote energy from the 135-megawatt South Fork venture onto the jap tip of Lengthy Island.
New York is concentrating on 70 p.c renewable electrical energy by 2030, and 9 gigawatts of offshore wind by 2035 — the best offshore goal within the nation. Your entire U.S. market has simply 42 megawatts of put in offshore wind capability at the moment however is on monitor so as to add 25 gigawatts by the top of the last decade, Wooden Mackenzie forecasts.
New York’s second offshore wind RFP appeared set for a delay because of the coronavirus pandemic, however in the long run officers obtained the solicitation on the road faster than many have been anticipating, framing it as a approach to assist revive the battered economic system.
“Throughout one of the vital difficult years New York has ever confronted, we stay laser-focused on implementing our nation-leading local weather plan and rising our clear vitality economic system,” Gov. Andrew Cuomo stated in a press release.
Within the solicitation, New York is in search of at the least 1 gigawatt of offshore capability and as a lot as 2.5 gigawatts. Particular person venture bids can vary from 400 megawatts to the complete 2.5 gigawatts. Bigger tasks have typically outperformed smaller ones within the handful of aggressive U.S. offshore wind solicitations held up to now.
Bids are due in October, and the profitable tasks shall be introduced within the fourth quarter of 2020.
The checklist of tasks that may conceivably bid into New York’s solicitation is pretty quick, probably giving Ørsted, Equinor or Winery Wind (owned by Avangrid and Copenhagen Infrastructure Companions) one other huge contract. New York and New Jersey are anxiously awaiting additional lease gross sales within the so-called New York Bight space south of Lengthy Island that might result in extra tasks and elevated competitors for future contracts.
After a setback final yr when Winery Wind’s 800-megawatt venture off Massachusetts bumped into allowing delays, the incipient U.S. offshore wind market now appears to be recovering its footing. Federal regulators on the Bureau of Ocean Power Administration lately accomplished their “supplemental” environmental research of Winery’s venture and its cumulative impacts, with no main surprises. Winery is hoping to have its ultimate federal permits in hand by the top of the yr, with main development to begin in 2021.
Additionally on Tuesday, the New York State Power R&D Authority (NYSERDA) and the New York Energy Authority (NYPA) issued a joint solicitation for 1.5 gigawatts of onshore photo voltaic and wind, within the fourth installment of the common onshore procurements the state has held since 2018.
Whereas onshore wind farms dominated the sooner rounds, photo voltaic took house the lion’s share within the third installment, reflecting a broader shift within the U.S. onshore renewables market.