New York’s Governor Andrew M. Cuomo announced that the New York State Public Service Commission has set a course for the state’s first procurements of offshore wind to support New York’s goal of 2,400 MW of new offshore wind generation by 2030 — enough to power 1.2 million New York households.
This first phase of the state’s procurements includes obtaining about 800 MW of offshore wind by 2019. With the issuance of this seminal order, New York has taken another major step toward the development of offshore wind off its Atlantic Coast, which will support the state’s goal to obtain 50% of its electricity from renewables by 2030.
“This action represents another major step toward establishing a clean energy future that is secure, reliable and cost-effective,” Governor 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.”
To achieve the Governor’s 2,400 MW goal, the New York State Energy Research & Development Authority will procure approximately 800 MW of offshore wind through a solicitation issued in the fourth quarter of 2018, in consultation and coordination with the New York Power Authority and the Long Island Power Authority. Awards are expected to be announced in the second quarter of 2019. If needed, a second solicitation will be issued in 2019.
“Under Governor Cuomo and as part of this order issued by the Public Service Commission today, New York is building a viable and leading offshore wind industry with high-quality jobs for New York and the Atlantic Coast,” said Richard Kauffman, Chairman of Energy and Finance, New York State. “Offshore wind is a tremendous clean energy source that will not only power millions of New York homes and businesses cleanly and affordably, it will help us combat climate change and reduce our reliance on dirty fossil fuels.”
Offshore wind costs have declined significantly in Europe and elsewhere around the world. As the industry develops, New York is ideally positioned to capitalize on these declining costs, economic opportunity, and renewable energy resource in support of the state’s climate goals. NYSERDA estimates that by 2030, New York can attract a $6 billion New York industry that will support nearly 5,000 new jobs in manufacturing, installation and operation of offshore wind facilities. Nearly 2,000 of these jobs would be in operations and maintenance, providing long-term career opportunities.
This action authorizes NYSERDA to include commitments to project labor agreements and prevailing wages as contract requirements for any awarded project. These provisions will ensure that good-paying jobs are associated with the development of offshore wind for New York State. Further, the order includes provisions to ensure that any awarded offshore wind projects consider the interests of ocean users such as commercial and recreational fishing, environmental stakeholders and coastal communities.
Through these solicitations, NYSERDA will procure Offshore Wind Renewable Energy Certificates, ORECs, from awarded facilities. Each electric utility and other third-party suppliers of electricity serving retail customers in New York will support these new offshore wind resources through the purchase of ORECs from NYSERDA.
“Offshore wind promises to be a great, clean, cost-effective source of energy for New Yorkers,” said Public Service Commission Chair John B. Rhodes. “With today’s action, we move decisively to procure 800 MW of this resource, on the path to meeting Governor Cuomo’s goal of procuring 2,400 MW of offshore wind energy by 2030.”
The New York State Offshore Wind Master Plan was announced earlier this year by Governor Cuomo and will guide the state in the responsible and cost-effective development of 2,400 MW of offshore wind by 2030. The Governor also directed NYSERDA to invest $15 million in clean energy workforce development and infrastructure advancement to train workers to support the growth of the offshore wind industry.
In June, NYSERDA was awarded a $18.5 million U.S. Department of Energy grant to lead the National Offshore Wind Research and Development Consortium. This nationwide offshore wind research and development consortium will be supported through a public-private partnership including the offshore wind industry, utilities, research laboratories, and other states.
NYSERDA will hold a technical conference to discuss topics related to the solicitation process at The Department of Public Service’s New York City office (90 Church Street, New York) and via webinar on Monday, July 23.
Alicia Barton, President and CEO, NYSERDA added: “Today’s announcement underscores Governor Cuomo’s unwavering commitment to ensuring offshore wind is developed responsibly, cost-effectively and in the very near future. New York has all of the assets—labor, ports, and policies—required to become a global hub for this emerging industry and we fully plan to capitalize on these strengths so that New Yorkers will reap the substantial environmental and economic benefits that offshore wind will bring.”
Filed Under: News, Offshore wind, Policy, Projects