New York awards 2.3GW of solar and wind in bid to put state on 2030 clean energy target path
State making up ground lost after 2023's mass renewables contract cancellations amid inflationary headwinds
New York has awarded long-term contracts for 23 utility-scale onshore wind and solar projects totaling 2.34GW of capacity that will generate more than $4.7bn in private investment, according to Governor Kathy Hochul.
“New York continues to foster competitive opportunities for the clean energy industry to thrive,” she said. “We are delivering on our commitment to make New York more prosperous by harnessing the benefits of a growing clean energy economy.”
The contracts include four wind farms: Apex Clean Energy’s 173.6MW Heritage, Invenergy’s 250MW Canisteo and 340MW Alle-Catt, and RWE’s 117MW Baron Winds II. The 19 solar arrays totaling 1.46GW are mainly in central New York.
They were awarded by the New York State Energy Research and Development Authority (Nyserda) after a competitive request for proposals under the Clean Energy Standard (CES), which mandates 70% of the state’s electricity come from renewable sources by 2030.
“New York continues to provide a reliable market for renewable energy projects,” said Nyserda CEO Doreen Harris.
Nyserda, as central procurement administrator, offers contracts to generators for purchase of Tier 1-eligible renewable energy credits (RECs) on behalf of load servicing entities (LSEs) in the state. The agency will then sell the RECs to the LSEs for compliance with their Tier 1 obligations.
Under the RES, each LSE is obligated to serve their retail customers by procuring new renewable resources, evidenced by the procurement of Tier 1 RECs from Nyserda or other sources.
Nyserda seeks to acquire Tier 1-eligible RECs only, and will not have any claim to associated energy, capacity, or ancillary services.
Hochul said the 2.34GW of energy is enough to power more than 700,000 homes, while the projects will create more than 2,500 near-term jobs.
Her office claimed the average bill impact for customers over the life of the contracts will be approximately 0.74 percent, or about 70 cents per month.
The nominal weighted average strike price of the awarded projects over the life of the contracts is $94.73/MWh. The strike prices are subject to certain adjustments in accordance with the terms of the awarded contracts based on certain price indices.
It cautions, however, that recent analysis by state planners indicates that a delay in achieving the 2030 CES “may be unavoidable due to global economic issues, supply chain disruptions, and geopolitical developments that have impacted the energy industry worldwide, including New York.”