December 23, 2024
New York Issues Expedited Renewable Energy Solicitations
State Moves to Regain Momentum as Onshore, Offshore Projects Struggle
A blade is affixed to the the first turbine installed at the South Fork Wind project in November.
A blade is affixed to the the first turbine installed at the South Fork Wind project in November. | Long Island Power Authority
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New York is moving quickly to keep its renewable energy development queue viable, launching solicitations for new onshore and offshore large-scale projects.

New York is moving quickly to keep its renewable energy development queue viable, launching solicitations for new onshore and offshore large-scale projects.

This new round is designed to move more quickly than previous New York solicitations, with hopes of restoring momentum to struggling projects and replacing any projects that are withdrawn.

Proposals under the state’s fourth competitive offshore wind solicitation (ORECRFP23-1) are due by Jan. 25, and award announcements are expected in February. Onshore developers have until Dec. 21 to establish eligibility for the seventh annual Renewable Energy Standard solicitation (RESRFP23-1). They must then submit proposals by Jan. 31, with award announcements also anticipated in February.

The Nov. 30 solicitation announcement followed a Public Service Commission decision in mid-October to not increase the reimbursement for several dozen contracted projects totaling more than 12 GW of nameplate capacity.

Developers had said they might not be able to start construction of the projects without more money, and there was speculation the PSC ruling would gut the clean energy portfolio the state is trying so hard to build.

But immediately after the PSC ruling, Gov. Kathy Hochul promised an expedited effort to help blunt its impact. The New York State Energy Research and Development Authority (NYSERDA) followed through with the solicitations for land-based and offshore projects.

The developers who had sought financial relief for projects awarded contracts under previous solicitations will be able to rebid those projects into this new solicitation.

This is key for offshore wind, given the lengthy timeline involved in planning and review of each project — a complete reset could set the state back years as it pursues statutory goals for emissions-free power.

The inflation-index option that was absent from early solicitations will be available to bidders in this latest request for proposals. Also, NYSERDA said it is streamlining the solicitation by removing certain bid requirements that were labor intensive to comply with but provided minimal value to officials evaluating the bids.

Offshore wind is a key component of the clean energy transition, promising gigawatts of emissions-free power.

A few projects are under construction or preparing to start construction in U.S. waters, having locked in their finances before spiraling costs clobbered the industry. But most are struggling with their financials.

New York’s neighbors are in the same position: New Jersey, Connecticut and Massachusetts have seen projects stalled or outright canceled, and a Rhode Island proposal was rejected as too expensive.

But all of the states have pressed forward — the southern New England states, New Jersey and now New York each have issued new solicitations in recent months.

Also, New York in late October announced conditional contract awards for three offshore wind projects totaling 4 GW of capacity.

The renewable energy industry had criticized the PSC for its decision and Hochul for an unrelated veto. But it welcomed the new solicitations.

Fred Zalcman, director of the New York Offshore Wind Alliance, said in a news release: “Actions speak louder than words, and we applaud the Hochul administration for providing, through this expedited RFP, a clear and unambiguous statement of support for offshore wind as an essential part of New York’s evolution towards a carbon-free grid.”

Anne Reynolds, executive director of the Alliance for Clean Energy New York, said: “I applaud New York’s fast action, because this sense of urgency is exactly what is needed to bring infrastructure projects to construction and achieve clean energy and climate goals.”

NYSERDAOffshore Wind PowerOnshore Wind PowerPublic Service CommissionUtility scale solar

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