United States

United States

New York suspends 2.5GW offshore wind tender

New York’s energy regulator has been authorised to launch an offshore wind tender, through which it could award contracts for a further 2.5GW of capacity. However, it has suspended the auction due to the coronavirus (Covid-19) pandemic.

New York aims to build 9GW of offshore wind by 2035
New York aims to build 9GW of offshore wind by 2035

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The state’s Public Service Commission (PSC) authorised the New York Energy Research and Development Authority (Nyserda) to issue a new offshore wind solicitation for at least 1GW and up to 2.5GW.

The energy regulator has planned to issue the tender - which would be the US' largest offshore wind auction to date - this summer, according to a petition filed with the PSC.

However, Nyserda has suspended its plans to hold the auction round indefinitely as government agencies prioritise New York's response to the ongoing coronavirus pandemic.

New York has recorded the highest number of cases and casualties in the US, according to statistics company Worldometer.

Nyserda stated: "While NYSERDA fully supports and is poised to execute on this authorization, based on industry input and a careful assessment of New York’s COVID-19 status, we feel that issuing a near term solicitation would not be responsible nor advisable at this time."

In its filing with the state regulators in January, the energy regulator argued that holding the auction this year would help developers to better “capture rapidly falling costs”.

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), Nyserda explained.

New York has a target of building 9GW of offshore wind by 2035, and has to date awarded contracts for 1.7GW of projects — Equinor’s 816MW Empire Wind Empire Wind (816MW) Offshoreoff Long Island , New York, USA, North America Click to see full details and Ørsted’s 880MW Sunrise Wind Sunrise Wind (880MW) Offshoreoff Martha's Vineyard, Massachusetts, USA, North America Click to see full details.

Following the state's first offshore wind tender, held in 2019, Nyserda said that the €83.63/MWh average price awarded was about 40% below its expectations.

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