By William Opalka

The Long Island Power Authority on Wednesday approved a contract for a 90-MW offshore wind farm, by far the largest such facility contemplated in the U.S.

The site, 30 miles off the island’s Southern Fork, is the first part of a wind development in federally leased waters that could support up to 1,000 MW of offshore wind.

Gov. Andrew Cuomo two weeks ago proposed the state develop 2,400 MW of offshore wind in various sites off Long Island to support the goal of 50% renewable energy by 2030. He also prompted the LIPA Board of Trustees to act on contract negotiations that had stalled since the summer. (See Cuomo Proposes 2,400 MW of Offshore Wind by 2030.)

The wind farm could provide enough electricity to power 50,000 homes. If the Cuomo proposal is realized, as many as 1.25 million homes could be powered.

The wind farm developer, Deepwater Wind, built the nation’s first offshore wind farm off Block Island in Rhode Island, which was commissioned last month.

The LIPA board approved a contract submitted by Deepwater Wind for the South Fork Wind Farm after a yearlong process. Offshore wind was the lowest-cost option in the request for proposals from LIPA, beating out natural gas generation.

Neither LIPA nor Deepwater released contract terms on Wednesday.

The 20-year power purchase agreement includes a pay-for-performance clause, which allows LIPA to only pay for delivered energy, eliminating operating and construction risk, the authority said. LIPA said technology improvements reduced the project’s “all-in” energy costs to be competitive with other renewable energy sources.

“Depending on the schedule for permitting, construction could start as early as 2019, and the wind farm could be operational as early as 2022,” Deepwater spokeswoman Meaghan Wims told RTO Insider.

LIPA CEO Tom Falcone said in a statement, “We are confident this is the first step to developing the tremendous potential of offshore wind off Long Island’s coast and meeting Gov. Cuomo’s Clean Energy Standard. This project is the right size, at the right location and demonstrates how smart energy decisions can reduce cost while providing renewable energy and clean air for all of Long Island.”

Elizabeth Gordon, director of the New York Offshore Wind Alliance, said, “LIPA’s 90-MW South Fork project moves New York to the forefront of offshore wind development in America. Major progress on what will be the nation’s largest offshore wind project, combined with Gov. Cuomo’s 2,400-MW commitment, makes it clear that New York is entering a new energy era — one where offshore wind power is poised to play a key role in meeting downstate’s electricity needs.”