AWEA - New York Issues Offshore Wind Power RFP for Great Lakes

In another offshore wind energy milestone, New York Power Authority (NYPA) President and CEO Richard M. Kessel announced this week the release of a request for proposals (RFP) for the development of offshore wind power projects in the New York State waters of Lake Erie, Lake Ontario, or both bodies of water.

At a time when the offshore wind power movement is accelerating—as exemplified this week by the recent announcement that negotiations will begin on a power purchase agreement for the proposed Cape Wind project as well as AWEA’s Offshore Wind Power workshop that drew over 730 (see related stories)—New York’s Great Lakes project or projects would likely be the first wind power development of any kind in a fresh water body in the nation.

“The development of a wind energy project in the Great Lakes off the shores of New York will bring us another step towards my goal to meet 30% of the state's electricity needs from renewable resources by 2015, help demonstrate the significantly untapped potential of offshore wind, and bring new clean energy jobs to western New York,” said Governor David Paterson (D). “I commend the New York Power Authority for helping transition New York to a clean energy economy, and for maintaining New York's leadership position in developing renewable energy resources.”

NYPA is soliciting proposals for the development of a utility scale, offshore wind power project in the range of 120-500 MW. The project would interconnect with new or existing transmission facilities of the appropriate regional electric utilities, which are all controlled by the New York Independent System Operator. NYPA would purchase the full output of the project under a long-term power purchase agreement (PPA).

The RFP initiates a process that would culminate in PPA negotiations that are targeted to be completed by May 31, 2011. The date for submitting an optional notice of intent to submit a proposal is March 20, 2010, and questions concerning the RFP will be accepted until April 9. Proposals are due June 1. Winning projects are expected to be awarded by December 2010. Prospective developers are requested to periodically check the NYPA Web site for possible date modifications. Respondents have been asked to include all project costs in their bids.

To investigate potentially feasible locations for project sites, NYPA has commissioned studies related to the project, including preliminary wind resource assessments, site screening and environmental studies, and other technical studies. Pertinent information from those studies will be posted on the NYPA Web site.

Respondents may propose projects located anywhere in the New York State waters of Lake Erie and/or Lake Ontario (subject to certain restrictions such as shipping lanes and avian exclusions). NYPA said it will give more favorable consideration to proposals that include long-term economic benefits for the region including the use of local labor and materials, the manufacturing of wind components, firm pricing, a target commercial operation date in 2015, and a strong likelihood of public acceptance.

The RFP is available on the NYPA Web site, and NYPA’s RFP contact person is Jordan Brandeis, email jordan.brandeis@nypa.gov . Questions and comments from interested members of the general public about the RFP or any aspect of the Great Lakes Offshore Wind Project can be emailed to info@nypa.gov .

In response to the RFP, AWEA issued the following statement by Peter Mandelstam, chairman of AWEA’s Offshore Wind Power Working Group, welcoming the news:

“This announcement furthers New York’s efforts to bring much needed jobs to upstate New York, helps fight climate change on the eve of the Copenhagen summit, and helps to satisfy New York’s expanded renewable portfolio standard (RPS). NYPA as a state agency brings the highest credibility to this initiative. The offshore wind industry welcomes this RFP as a move that will accelerate the momentum for offshore development, spur the development of an offshore supply chain, and create jobs in the United States.”