Page 21: of Maritime Reporter Magazine (April 2019)

Navies of the World

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MARKET: OFFSHORE WIND from choosing a contractor to securing tive answer, referencing generation costs ? gure would be competitive and favor- reasoning, is the time for bold leadership money for payment. Third, state utility for an upcoming Massachusetts project able for NY. Again, NY will need new in a new, green energy industry. Eventu- commissions act on projects. To that of around $65/MWh, implying that that generation. So now, goes this of? cial ally, the PSC argues, because of timely end, New York’s Public Service Com- mission’s “Order Establishing Offshore

Wind Standard and Framework for Phase 1 Procurement”, July 2018, is about ac- tion, not discussion. This PSC Order cre- ated a framework that started a remark- able and fast-moving set of events.

• On November 8, NY Governor

Cuomo directed the New York State En- ergy Research and Development Author- ity (NYSERDA) to issue a request for proposals (RFP) seeking 800 megawatts or more of new offshore wind projects.

• By deadline, February 14, four ma- jor developers submitted proposals: 1. Atlantic Shores Offshore Wind 2. Empire Wind Project – Equinor US Holdings, Inc.

3. Liberty Wind - Vineyard Wind 4. Sunrise Wind – Bay State Wind LLC, a joint venture of Ørsted A/S & Eversource Energy.

• By March 31 New York’s LSEs – “Load Serving Entities” – investor owned utilities as well as municipal sys- tems and power cooperatives – were to formally commit to purchasing the off- shore wind power. That guarantees a customer base from Montauk on eastern

Long Island to Buffalo. LSEs will buy power in proportion to each utility’s an- nual total load.

• In the spring, NY will select a devel- oper.

• Contracts are expected by summer.

This could hit a brick wall if the eco- nomics/prices aren’t right. Right now, ? nance is a mystery – except to state reviewers – because the public versions of the developers’ proposals are heavily redacted, making it impossible to review generation costs or wholesale/retail costs or what kind of subsidy New York rate- payers might have to pay.

Still, in the years ahead, New York will need new and replacement electric gen- eration capacity. Natural gas is the only other viable generation fuel but even gas has been marginalized because of con- stant and increasing opposition related to safety, environmental and climate issues.

Plus, New York of? cials are con? dent that wind prices will be competitive, that

U.S. projects will mirror the steep price declines seen within recent European wind projects.

When asked about costs, NYSERDA staff (not otherwise identi? ed in an email), provided an indirect, compara- 21

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