New York seeks to procure renewable projects worth US$1.5 billion

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The Governor of New York, Andrew M. Cuomo, has announced the launch of the second tender for large-scale renewable energy projects in the state. The tender will procure Tier 1 Renewable Energy Certificates for up to 20 projects. It is expected to trigger up to US$1.5 billion in private investment and create more than 1,000 new well-paying jobs for New Yorkers. 

The tender is expected to support the generation of 1.5 million megawatt-hours of renewable electricity per year, enough to power 200,000 homes, and advance New York's nation-leading commitment to secure 50% of the state's electricity from renewable sources by 2030. 

The tender is being implemented by New York State Energy Research and Development Authority (NYSERDA) through a three-step process, consisting of:

1. Step One: Resource Eligibility Determination - determines whether the project is eligible for Tier 1 Renewable Energy Certificates through the New York Generation Attribution Tracking System (NYGATS). This is is available now.
2. Step Two: Application for Qualification - bidders must prove that their projects meet certain threshold requirements for submitting proposals. NYSERDA is opening this today.
3. Step Three: A competitive Bid Proposal.

Only those proposers found eligible and qualified through the Step One and Step Two are permitted to submit a Bid Proposal or otherwise participate in Step Three.

Notable new provisions in this solicitation include: 

• Requiring that workers associated with the construction of any awarded facility be paid the applicable prevailing wage, a standard set by the New York State Department of Labor, ensuring that the projects will result in quality, good-paying jobs for New Yorkers;  
• Preserving and protecting New York's valuable agricultural resources by providing bonus points for renewable energy projects that avoid overlap with land of agricultural importance to New York State;  
• Ensuring that communities that would host successfully awarded projects are fully aware of the development process, proposers will be required to demonstrate that they have engaged with those communities and have also commenced the associated permitting processes; and 
• Continuing to encourage proposals that cost-effectively pair renewable energy with advanced energy storage technologies to help meet the governor's commitment to deploying 1,500 MW of energy storage by 2025. 

This is the second in a series of major procurements planned by the state government. As reported on this platform, the results of the first tender were announced in March. The projects procured represented a US$1.4 billion investment and included 22 utility-scale solar farms, three wind farms and one hydroelectric project.