New York fishes for lower prices before deciding on offshore wind bids

New York state has said that bidders in its third offshore wind solicitation can update their pricing – but only if they lower their bid.

The New York Energy Research and Development Authority (Nyserda) issued an addendum to its third wind solicitation on 27 July.

The window to submit proposals for the third round closed more than six months ago, on 26 January. Results will be announced in the fourth quarter of 2023, the authority said 

“As part of this addendum, Nyserda provided a clarification to all bidders and offered another opportunity for updated pricing to ensure the most competitive award group,” the authority said on its website. “Bid prices cannot be adjusted upwards, and no other changes to bids will be allowed.”

Proposers must respond to Nyserda regarding any new pricing by 24 August.

Awarded contracts will still be linked to inflation to account for inflation between a developer submitting its project and the Bureau of Ocean Energy Management approving its construction and operation plan, however. Indexing had been proposed in the 2022 tender.

For months, project cost increases have become a major issue in offshore wind, including on the US east coast. Most recently, Swedish developer Vattenfall said it would shelve the 1.3GW Norfolk Boreas offshore project in UK waters, citing soaring costs and inflation.