On July 27, 2022, New York Gov. Kathy Hochul announced the release of the state’s third offshore wind solicitation. With this request for proposals (RFP), New York looks to secure at least 2,000 MW of additional offshore wind power generation — expanding on New York’s already approximately 4,300 MW generation portfolio and further positioning the state to meet its goal of at least 9,000 MW of offshore wind by 2035.
The RFP parallels New York’s dedication to spending hundreds of millions in investments for new ports, manufacturing and supply chain infrastructure that further retrofit, support and ultimately bolster the state’s thriving industry and domestic supply chain. Most notably, and as set forth on the New York State Energy Research and Development Authority (NYSERDA) website, the RFP highlights the following key initiatives:
- Supply chain investment plans are required and will support the development of a strong, local supply chain that will not only create jobs for New Yorkers but help bolster the state’s standing as a regional hub for offshore wind manufacturing.
- Due to the reduced footprint in transmitting energy from offshore wind projects to shore, high-voltage direct current (HVDC) technology will be required for all projects where cables will be installed in areas of constraint. If HVDC is used, projects must be “mesh-ready” to strengthen reliability and provide redundancy. These features also permit more flexibility for future offshore wind projects.
- Proposals must include stakeholder engagement plans and New York workforce and jobs plans to ensure alignment with the principles of a just transition outlined in the Climate Leadership and Community Protection Act.
- In promoting the intent of the New York Buy American Act, the solicitation sets a minimum U.S. iron and steel purchase requirement for all projects awarded to encourage domestic steel production and requiring developers to provide opportunities for U.S.-based steel suppliers to participate in the growing offshore wind industry.
- Proposers may submit plans to repurpose existing downstate fossil-based electricity generation infrastructure in alignment with Hochul’s 2022 State of the State Address priorities to enhance future system reliability and support more renewable energy on the grid. Proposers must submit a timeline and studies to support the proposal that consider local requirements and plans to address the just transition of generation plant workers.
- This solicitation allows for economic benefits associated with energy storage and other clean energy and decarbonization investments. Investments may include pilot and demonstration projects that complement offshore wind development, including innovative storage projects such as clean electrolytic hydrogen.
NYSERDA plans to host a conference for potential bidders via webinar on Aug. 23, 2022. Proposals will be analyzed based on price, economic development and overall feasibility. RFP responses are due Dec. 22, 2022, with an estimated contract award slated for the first quarter of 2023.
This RFP represents the latest advancement of Hochul’s offshore wind plan to build on more than 6,800 direct high-paying jobs, a combined economic impact of $12.1 billion statewide and more than 4.3 gigawatts of energy, which is enough to power nearly 3 million New York homes and represents half of New York’s 2035 goal.