New York launches renewable energy auctions to backfill likely cancelled projects
Tenders follow state rejection of pricing relief petitions that left over 13GW of offshore wind and land-based development in limbo
New York announced its round 4 solicitation for offshore wind and a further procurement for land-based renewable energy to claw back capacity that faces cancellation following failed contract renegotiations.
“These expedited solicitations will continue to build upon our momentum toward achieving a zero-emissions electric grid,” said Doreen Harris, president of the New York State Energy Research & Development Authority (Nyserda).
Nyserda oversees renewable energy development in the state.
The state will have to add 20GW of renewable capacity versus 6.5GW in place last year.
Joint venture (JV) partners Equinor-BP had sought hikes exceeding 50% for its 3.3GW of offshore wind projects, while the Orsted-Eversource partnership had sought a 27% increase for its 920MW Sunrise Wind array.
Both JVs said that surging inflation and interest rates and ongoing supply chain turmoil had rendered their projects unviable and indicated that they were prepared to walk away, putting the state at risk of not meeting its goals.
A consortium of 7.5GW of land-based renewables developers and a 1.7GW transmission project guided by the Alliance for Clean Energy New York (Ace-NY) had likewise sought contract hikes exceeding 70%, which were likewise rejected by PSC.
“The renewable energy industry is encouraged by New York’s speedy issuance of solicitations for renewable energy projects, both offshore wind power and land-based wind and solar power, knowing that companies are looking forward to competing for these contracts,” said Ace-NY executive director Anne Reynolds.
Critically for the renewables industry, the new solicitations include provisions for inflation indexing.
“Nyserda's issuance today of a major solicitation, providing market-based offtake opportunities for both early and advanced stage offshore wind projects, offers crucial and timely support for New York's rapidly developing clean energy economy,” said New York Offshore Wind Alliance director Fred Zalcman.
Offshore wind bids are due to 25 January next year, with Nyserda expecting to select projects in February.
Land-based renewables solicitation will be bid in two steps, with eligibility requirements due 21 December 21 and final proposals on 31 January. 2024.
Award announcements are expected by the end of April 2024.
Nyserda has previously stated that eligibility in the new rounds includes termination of any existing contracts.