The New York State Energy Research and Development Authority (NYSERDA) announced on Nov. 30 that it is on track to become the first state entity in the nation to participate in a federal auction for an offshore wind site. NYSERDA said it submitted the required documentation and a bid deposit to the U.S. Department of […]
The New York State Energy Research and Development Authority (NYSERDA) announced on Nov. 30 that it is on track to become the first state entity in the nation to participate in a federal auction for an offshore wind site.
NYSERDA said it submitted the required documentation and a bid deposit to the U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM) to take part in an auction for a 79,350-acre wind-energy area located 12 miles off the Long Island coast.
The Authority submitted qualifications and bidder’s financial forms for the Dec. 15 auction, which is a blind, ascending bid, online auction with the asking prices set by BOEM.
BOEM is offering a 10 percent non-monetary credit to qualified bidders who meet the definition of a “government authority” and NYSERDA has submitted the required documentation and requested this 10 percent credit.
The Authority says offshore wind supports Governor Andrew Cuomo’s “Reforming the Energy Vision” strategy to build a “clean, resilient and affordable energy system for all New Yorkers.” The state intends to use offshore wind to help meet its goal to secure 50 percent of the state’s electricity from renewable sources by 2030.
NYSERDA contends that if it wins the auction, its approach to the development of the wind-energy area will provide developers and consumers with “greater certainty, fewer risks, and lower costs.”
“Offshore wind is crucial to meeting New York’s ambitious energy goals under Governor Cuomo,” John B. Rhodes, president and CEO of NYSERDA, said in a news release. “If NYSERDA is successful in the bidding, we will engage all involved stakeholders and ensure that offshore wind in New York is developed responsibly and in a way that balances the needs of all constituents, including coastal communities and the fishing and maritime industries. We will also ensure that the site will be developed competitively …”
NYSERDA said it has developed an “Offshore Wind Blueprint” that creates a framework for the “responsible development” of wind-energy generation off the coast of New York and has launched several site assessment and characterization studies, with plans to initiate more over the coming months. These activities will provide information to the state’s comprehensive “Offshore Wind Master Plan,” originally announced by Governor Cuomo in his 2016 State of the State address.
The updated master plan, to be released in 2017, will identify additional offshore wind sites beyond the current BOEM area being auctioned and will also set targets for capacity and commercial operation dates for each site, NYSERDA said. After acquiring the new sites, NYSERDA will bundle site assessment and characterization-study results with financeable offtake agreements for the purchase of the electricity produced by the turbines, and hold competitive solicitations for each site for companies interested in developing projects.
NYSERDA is participating in the BOEM auction so it can create competition “when it counts” — after considering stakeholder input regarding how the site is developed, completing studies and bundling the site with an offtake agreement, reducing risks, and allowing developers to reduce margins for unknowns, the Authority said.
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