The US Bureau of Ocean Energy Management (BOEM) does not expect to hold the next tender for commercial wind energy development zones off the coast of New York before late 2019, Recharge has learned.
“The earliest BOEM will be able to complete its renewable energy leasing process and all associated reviews, stakeholder engagement, consultations, and hold an auction would be late 2019,” says an agency spokesperson.
That is a slower timetable than sought by Governor Andrew Cuomo, who recently called for the procurement of 800MW of offshore wind energy in two solicitations to be held this year and in 2019.
His administration wants to follow those moves with a “set schedule” of solicitations to reach a 2030 target of 2.4GW – the highest of any state – and create competition among developers to build some of the largest projects in the US.
In response to “strong stakeholder and state interest,” BOEM says it plans to issue a Call for Information and Nominations (Call), anticipated later this year, for offshore areas within the New York Bight region.
The Call initiates the leasing process in three ways: identifies the zone from which Wind Energy Areas (WEAs) will be selected; requests public comments on a specific area of the outer continental shelf under consideration for leasing, and the nominations reveal if there is competitive interest from developers.
A BOEM-state task force has proposed four draft areas for the Call in the Bight region that are located south-southeast of Long Island. From west to east they are Barnegat Bay, Hudson North, Great South Bay and East End.
Norway’s Statoil holds development rights to a 1GW zone that is adjacent north-northwest to the proposed Hudson North Call area. It paid a US market record $42.5m in a December 2016 auction.
After the Call is published in the Federal Register, a 45-day public comment period will open.
BOEM is particularly interested in feedback that addresses whether it should and could – and how - modify the draft Call areas to resolve potential user conflicts such as cumulative and/or wake effects, fishing, military and navigation.
Other topics include visual impacts, nominations requirements, seaward boundaries of the draft Call areas and stakeholder outreach.
Once WEAs are identified, then BOEM will conduct environmental assessments as required by federal law.
When completed (there is no firm timeline for the environmental assessment process), BOEM will seek further public comment and stakeholder involvement.
The next step would be a Proposed Sale Notice, 60 days of additional public comment and then a Final Sale Notice leading to the auction.