RPS, RECs, & PPAs

New York has given the go-ahead to what would be the nation's largest offshore wind farm, a 90 MW installation to be located 30 miles southeast of Montauk and out of sight of Long Island. The Long Island Power Authority (LIPA) this week approved a 20-year contract with Deepwater Wind's South Fork Wind Farm, specifying it would pay only for the energy and not construction or operation. Deepwater Wind has said construction on the wind farm could start by 2019 with the project in operation by 2022. http://bit.ly/2nNig4q

New York has given the go-ahead to what would be the nation's largest offshore wind farm, a 90 MW installation to be located 30 miles southeast of Montauk and out of sight of Long Island. The Long Island Power Authority (LIPA) this week approved a 20-year contract with Deepwater Wind's South Fork Wind Farm, specifying it would pay only for the energy and not construction or operation. Deepwater Wind has said construction on the wind farm could start by 2019 with the project in operation by 2022.

The database provides summaries of federal financial incentives and rules, regulations, and policies that promote renewable energy and energy efficiency, including: business energy investment tax credit (ITC); renewable electricity production tax credit (PTC); and, section 1603 Department of Treasury renewable energy grant program.

Link to DSIRE website:  Federal page

From the Introduction and Overview: "This report was prepared to make certain that the Commission's offshore wind procurement, evaluation, and selection process (i) is as fair, transparent, and workable as possible, (ii) leads to robust and competitive bids, and (iii) preserves the ratepayer protections defined in the Maryland Offshore Wind Energy Act of 2013."

A new study, conducted by the University of Delaware's Special Initiative on Offshore Wind for the New York State Energy Research and Development Authority, offers a roadmap of key strategic steps New York State can take to reduce costs of offshore wind power over the next decade. The study finds that ongoing technology and industry advances combined with actions New York could take, independently or with other states, could lower costs for offshore wind power as much as 50 percent and bring the clean-energy source closer to realizing its potential for "delivering utility-scale renewable electric generation" to New York City and nearby areas such as Long Island.  

A primary conclusion from the report is that supporting offshore wind development at scale, rather than on a project-by-project basis, could have the greatest impact on reducing costs.  Other actions the report cites that could lower costs include creating and using innovative financing mechanisms, developing infrastructure to reduce costs, and supporting site characterization for early projects to reduce development expenses and risk.

The study notes that while onshore wind development has expanded rapidly in the U.S., no operational offshore wind power projects have been completed to date due to complex construction challenges and the need for operational infrastructure that doesn't exist today in the U.S.  These factors lead to high costs and have delayed deployment.

The study identifies multiple paths for reducing offshore wind power costs in New York State, emphasizing that the "State can take actions in the near term to lower its costs substantially, independent of expected external reductions over the next decade." The study finds that taking advantage of wind turbine innovations and other technology and industry advances could lower costs about 20 percent. Direct steps taken by New York State could contribute up to an additional 30 percent reduction in a project's cost.http://www.ceoe.udel.edu/File%20Library/About/SIOW/New-York-Offshore-Wind-Cost-Reduction-Study-ff8-2.pdf

The two major PPAs for Cape Wind's offshore wind power were terminated in January 2015. Details are available here: http://www.masslive.com/business-news/index.ssf/2015/01/cape_wind_loses_contracts_with_northeast.html

A Senate Resolution urging the Board of Public Utilities to expeditiously adopt regulations pursuant to the “Offshore Wind Economic Development Act” to implement an offshore wind renewable energy certificate program and pursuant to the “Electric Discount and Energy Competition Act” to establish energy efficiency portfolio standards.  http://www.njleg.state.nj.us/2014/Bills/SR/112_I1.HTM