New York will seek power from up to 2.5GW of offshore wind capacity, the largest round yet by any US state, and more than 1.5GW of land-based utility-scale renewables projects in a move hailed for showing national leadership on clean energy.

Together, the solicitations seek to procure 12 million MWh, enough to power more than 1.5 million homes annually, spur $7bn in direct investments and create 4,500 short- and long-term jobs.

Offshore wind bids are due by 20 October with awards and contracts expected to be executed in the fourth quarter, respectively. New York State Energy Research and Development Authority (NYSERDA), which oversees the solicitation process, will accept bids between 400MW and up to 2.5GW. At least 1GW of capacity procurement will occur in this round.

The agency will evaluate bids using an "ultimate weighting" formula based 70% on price considerations, 20% on economic benefits to New Yorkers, and 10% project viability.

NYSERDA is opening this round to companies that have nine areas under lease off the coasts of Massachusetts, New Jersey and New York. They are Equinor, Mayflower Wind, Orsted-Eversource and Vineyard Wind (Massachusetts); Atlantic Shores and Orsted (New Jersey), and Equinor (New York).

Mayflower Wind is a joint venture between Shell New Energies and EDPR, while Shell has teamed with EDF Renewables in Atlantic Shores.

The move is recognition by New York that it needed to go beyond the one area immediately off its coast held by Equinor, which may have as little as 1.2GW of remaining nameplate generation capacity, according to one estimate.

State officials since 2018 have been pressuring President Donald Trump's government to make available substantial new lease areas, which it has done south of Long Island and New York harbour.

But the Bureau of Ocean Energy Management (BOEM) has slowed the final vetting process and timetable for competitive auctions until next year due to Covid-19 disruptions and the immediate need to finalise permitting of Vineyard Wind, the nation's long-delayed flagship offshore project.

If New York does procure the full 2.5GW capacity this round, it will be close to half-way toward its nation-leading 9GW offshore wind goal by 2035, after awarding almost 1.7GW in an initial solicitation last year to Sunrise Wind (880MW) and Equinor (816MW). Sunrise is a joint venture between Orsted and regional utility Eversource.

Port requirements

Developers that submit bids must combine their projects with investments in any of 11 ports prequalified by the state to “holistically” support New York’s offshore wind industry through a public/private partnership. Those ports are in Long Island (1), the metropolitan New York City region (5) and along the Hudson River (5).

The sites have potential to support various supply chain end uses such as staging, installation, manufacturing and operations and maintenance. They are now eligible to partner with developers for up to $200m in public funding for direct use in advancing both individual arrays and the long-term industry.

That approach differs from neighbouring New Jersey which is investing $400m in the nation's first dedicated offshore wind port at a single site on the Delaware River to support its 7.5GW sector ambitions.

"Port infrastructure and offshore wind development go hand-in-hand and, with the release of these two RFPs, New York is clearly positioned to lead the nation in offshore wind development and maximise its environmental and economic benefits," said Joe Martens, director of New York Offshore Wind Alliance, an Albany-based advocacy group.

Special provisions

The state is also requiring developers to send a “clear buy-clean demand signal” to the market to encourage consideration of their project’s carbon footprint in design, sourcing and construction, and to spur use of advanced materials.

The offshore wind solicitation includes a bevy of provisions that require developers to use union labor for construction, and “prioritise opportunities” for minority, woman-owned and service-disabled veteran-owned business enterprises.

The land-based renewables solicitation will cover projects that will provide power for nearly 500,000 homes. Those selected will be “fast-tracked” to construction under legislation passed earlier this year to accelerate renewable energy siting to ensure projects are developed responsibly and quickly.

Eligible projects include any facility that can be certified as a Tier 1 renewable technology and entered operation after January 1, 2015, and that enters commercial operation by 30 November 2022. There is an option for extensions to 30 November 2025.

Wind

'Leading the nation': New York in US record 2.5GW offshore wind round