New York State has opened its third offshore wind solicitation, seeking to procure at least 2,000 MW of offshore wind energy.
The procurement, administered by the New York State Energy Research and Development Authority (NYSERDA), will be open for proposals from developers until 22 December, with solicitation award announcements expected in early 2023.
The state’s third solicitation includes the first phase of the USD 500 million investment in offshore wind ports, manufacturing, and supply chain infrastructure, announced at the beginning of this year by Governor Kathy Hochul.
In addition to giving a boost to the ports and the state offshore wind supply chain, the new procurement also introduces a “meshed ready” offshore transmission configuration.
This will facilitate offshore wind projects’ transition to a future system that can grow over time and provide greater reliability and flexibility while setting New Yorkers up to save approximately USD 55-USD 60 million annually, according to a press release from the Governor’s office.
Evaluation points will also be awarded for repurposing existing downstate fossil-based electric generation infrastructure and utilising energy storage to enhance future system reliability and support more renewable energy on the grid.
Furthermore, the solicitation is emphasising in-state manufacturing, inclusive economic development and climate equity, fostering relationships with New York’s workforce including construction backed by prevailing wage, and encouraging project labour agreements.
It also sets a minimum US iron and steel purchase requirement for all awarded projects to encourage domestic steel production and requiring developers to provide opportunities for US-based steel suppliers to participate in the growing offshore wind industry.
The new procurement for 2 GW of offshore wind is part of the New York State goal of having 9 GW of offshore wind capacity on the grid until 2035.
New York State currently has five offshore wind projects in active development, the largest portfolio in the nation, with its first offshore wind farm, the 130 MW South Fork project, now under construction.
The other four are: Sunrise Wind (924 MW), Empire Wind 1 (816 MW), Empire Wind 2 (1,260 MW) and Beacon Wind (1,230 MW).
The five projects have more than 4,300 MW of generation capacity in total and will power more than 2.4 million New York homes. With the new 2 GW to be procured, New York State will ensure enough clean energy to power at least 1.5 million homes more.
The offshore wind farms in active development are expected to bring a combined economic impact of USD 12.1 billion to the state. These projects are also expected to create more than 6,800 jobs in project development, component manufacturing, installation, operations and maintenance.