LIPA declines to back 210MW Deepwater Wind project: report

The Long Island Power Authority (LIPA) has reportedly rejected a 210MW offshore wind proposal from developer Deepwater Wind, after the state-controlled grid operator concluded it has enough renewables in the works for now.

Deepwater had hoped to begin building a 210MW offshore project immediately after its 90MW South Fork, for which it secured a power-purchase agreement with LIPA earlier this year. But LIPA has passed for now on a follow-on contract with Deepwater, according to a report in Newsday, a news outlet covering Long Island.

The report cites an unnamed “senior LIPA official”, with a formal announcement expected this week.

South Fork – located within Deepwater’s “One” zone south of Rhode Island and Massachusetts – is due for completion in the early 2020s, and is likely to be the largest US offshore wind farm by far when it begins commercial operation.

Deepwater eyes 'seamless' move into 210MW project after South Fork

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Regardless of LIPA's immediate plans, Deepwater and other offshore wind developers are likely to see big new opportunities opening in the New York power market over the next few years as a result of the state’s 2.4GW offshore wind target for 2030.

Norway’s Statoil paid a record-high $42.5m for an offshore wind development zone south of Long Island in a competitive tender held in late 2016.

While New York is studying a huge area south of Long Island for potential future offshore wind development, state officials have made clear that other projects in the region will be welcome to bid for future off-take deals, with the intention of fostering competition and bringing down costs.