New York Governor Kathy Hochul has announced the release of a new 10-Point Action Plan to accelerate procurements, covering offshore projects that will drop out over pricing issues caused by the New York State Public Service Commission’s refusal to renegotiate PPAs in the state.
“Strong, continued support for expanding the renewable energy sector is critical to realizing the full potential of our green economy and protecting New Yorkers from the climate crisis,” said Governor Hochul (pictured).
“This 10-point action plan underscores our commitment to addressing challenges that this sector is experiencing all across the country and hardens our resolve to ramp up our efforts in providing affordable and clean energy to all New Yorkers.”
The 10 actions are:
Action 1: In the near future, NYSERDA will announce a historic suite of awards comprised of offshore and onshore renewable energy projects, along with major supply chain investments. These awards will mark one of the largest-ever renewable energy procurements by any state to date and will demonstrate New York State’s commitment to supporting renewable energy projects and promoting large-scale renewables.
Action 2: NYSERDA will address the directives issued in the October 2023 Public Service Commission Order and will assess the impacts on its large-scale renewables contracted portfolio in an expedited manner.
Action 3: NYSERDA will launch an accelerated renewable energy procurement process for both offshore and onshore renewable energy projects, aiming to backfill any contracted projects which are terminated. The process will be guided by core principles, including prioritizing competition, simplifying bid requirements, incorporating inflation indexing, applying critical labour protections and collaborating with industry to optimize the accelerated procurement timing, all while coordinating with ongoing transmission planning initiatives.
Action 4: New York will continue to actively engage with the Federal government to bring forward market solutions, from establishing a Memorandum of Understanding with the US Department of Energy Loan Programs Office to access low-cost financing for large-scale renewable projects, to advocating for updated guidance on clean energy tax credits and a Federal-State revenue-sharing program.
Action 5: New York is investing in, and actively planning, a historic buildout of transmission infrastructure across the state including $4.4bn in 62 local transmission projects to support clean energy integration in upstate areas; $4.1bn in transmission upgrades to integrate offshore wind and increase reliability for Long Island and New York City; soliciting additional solutions to meet New York City’s offshore wind transmission needs; and collaborating with other states and federal agencies on interregional transmission to reduce costs.
Action 6: New York is supporting the establishment and growth of a supply chain ecosystem to help the market scale, gain efficiencies, and reduce costs. The state is investing $700 million in offshore wind supply chain infrastructure while also working with other states and federal agencies to collaborate and reduce costs through a shared vision for a U.S. supply chain.
Action 7: New York is committed to building and expanding its clean energy workforce. NYSERDA has thus far committed more than $170m for workforce development and training initiatives, which prioritizes benefitting priority populations, disadvantaged communities, and transitioning fossil fuel workers to clean energy careers. Starting in 2024, the New York Power Authority (NYPA) will further reinforce this commitment by contributing up to $25m annually to the Department of Labor for renewable energy job training, ensuring a Just Transition for energy workers. Moreover, NYSERDA is at the forefront of prioritizing workforce development, inclusion, and equity within New York’s large scale renewables industry.
Action 8: New York launched the Offshore Wind Master Plan 2.0 in 2022, which will provide a plan for the future of offshore wind development, including in deeper waters, that will allow for the expansion of the industry and ability to meet regional development targets. By planning for and seeking an increase in available lease areas, New York would expand access to necessary offshore areas to host projects, increase competition in the market and widen the pool of developers, while introducing new ideas and innovations to reduce costs.
Action 9: New York is actively engaging with industry stakeholders and will increase such outreach following the PSC order through roundtable discussions to receive input in shaping our clean energy strategy.
Action 10: New York is deeply committed to fostering public engagement, transparency, and collaboration recognizing the importance of involving various stakeholders in shaping our clean energy initiatives.
NYSERDA president and chief executive Doreen M. Harris said: “NYSERDA remains steadfast in its commitment to develop renewable energy projects on behalf of New Yorkers and is proud to showcase this plan which effectively captures the strategic vision Governor Hochul has for growing a vibrant renewable energy industry.
“Over the coming months, we will demonstrate to the nation how to collectively recalibrate in the face of an evolving renewables marketplace and address the growing energy and supply chain challenges head-on in a comprehensive, cost-effective and responsible manner.”