Contracts for a minimum of 1 GW extending to 2.5 GW planned for auction this summer
Yesterday the New York Public Service Commission (PSC) authorized the New York State Energy Research and Development Authority (NYSERDA) to issue a new offshore wind solicitation for at least 1GW and up to 2.5GW. Developers beginning construction or investing 5% total project costs by the end of 2020 would qualify for 18% of the expiring Investment Tax Credit (ITC).
New York has a target of building 9GW of offshore wind by 2035, and has to date awarded contracts for 1.7GW of projects — Ørsted’s 880MW Sunrise Wind and Equinor’s 816MW Empire Wind. This forthcoming tender will increase that still further.
The commission took the decision on 23rd April authorizing NYSERDA to procure at least 1GW and granting it the flexibility to consider 2.5GW, if the “pricing and other terms are sufficiently compelling”. NYSERDA should follow an evaluation weighting for projects of 70% based on price, 20% on economic benefits and 10% project viability, as set out in the state's Offshore Wind Order, according to the commission's specifications.
According to NYSERDA the 2020 solicitation is expected to be launched in July.
NewEnergyUpdate will be keeping a close watch on this tender and will post further information when it becomes available.
2020 Offshore Wind Solicitation: https://www.nyserda.ny.gov/All-Programs/Programs/Offshore-Wind/Offshore-Wind-Solicitations/Generators-and-Developers
The US offshore wind market is probably the most rapidly-developing renewable energy sector in the world.
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