Solicitation and Award
Tier 4 2021 Solicitation (Closed)
The Public Service Commission’s October 15, 2020 Order (CES Modification Order) [PDF] established a new Tier 4 within the Clean Energy Standard (CES). In response to the CES Modification Order, NYSERDA issued a request for proposals (RFP) for renewable energy projects that are located in or deliver energy to Zone J. The solicitation generated robust competition, including seven different projects with 35 total alternative bid variants. After a thorough vetting and scoring process, two recommended contracts were approved by the PSC in April 2022 for the Clean Path NY (CPNY) and Champlain Hudson Power Express (CHPE) Projects that will deliver wind, solar, and hydropower to New York City.
Tier 4 Solicitation Eligibility
Tier 4 was open to the following renewable energy systems: solar thermal, photovoltaics, on-land wind, hydroelectric, geothermal electric, geothermal ground source heat, tidal energy, wave energy, ocean thermal, and fuel cells which do not utilize a fossil fuel resource in the process of generating electricity. To be compensated under Tier 4, the resource must either be located in Zone J or delivered to Zone J over a new transmission interconnection (that electrically connects after October 15, 2020). Non-hydropower renewables must achieve commercial operation after October 15, 2020 to be eligible for Tier 4. Hydropower resources must be existing or already under construction as of June 18, 2020.
Offshore wind RECs will be procured separately from Tier 4 resources. Behind-the-meter resources are not eligible under Tier 4.
Step One: Eligibility Response
NYSERDA’s Tier 4 RFP solicitation garnered a significant level of competitive interest from the private market. NYSERDA received 18 Tier 4 Step One Eligibility Applications, from 14 proposers representing:
- A total of nearly 57 million annual megawatt hours of renewable energy – the equivalent of powering 8 million New York homes; and
- Nearly 14,000 megawatts of new transmission capacity, more than four times the maximum quantity sought through the solicitation.
Step Two: Bid Response
In response to New York’s Tier 4 solicitation, NYSERDA received bids from seven proposers for seven projects with 35 alternative configurations representing:
- A total of over 35 million megawatt hours of renewable energy per year – the equivalent of powering five million homes; and
- Nearly 7,500 megawatts of new renewable transmission capacity – nearly five times the capacity sought through the solicitation.
The strong response provided the robust competition needed to responsibly deliver renewable electricity to New York City and unlock significant benefits, including greenhouse gas reduction and improved air quality while spurring significant private sector investment and job creation. Public versions of the materials submitted under the Tier 4 solicitation can be found linked below.
- Catskills Renewable Connector [PDF]
- Champlain Hudson Power Express [PDF]
- Champlain Hudson Power Express Alternative Bid [PDF]
- Champlain Hudson Power Express Attachments [PDF]
- Champlain Hudson Power Express Alternative Bid Attachments [PDF]
- Clean Path NY [PDF]
- Clean Path NY Alternate Bid [PDF]
- Clean Path NY Appendices [PDF]
- ConnectGen Solar Portfolio [PDF]
- Excelsior Connect [PDF]
- Excelsior Connect Attachments [PDF]
- MACS 911 [PDF]
- Tier 4 Connector [PDF]
NYSERDA conducted extensive outreach during the solicitation process. Final responses to submitted questions [PDF] and the slides presented during the May 3, 2021 Webinar [PDF] are available. Questions submitted during the Webinar are included in the posted responses. NYSERDA also hosted a webinar for interested Tier 4 Proposers [PDF] on Monday, May 3, 2021, from 11:30 a.m. – 12:30 p.m. ET.
NYSERDA posted the and the slides presented during the on May 7, 2021. Questions submitted during the Webinar are included in the posted responses.
An update [PDF] to the Tier 4 RFP was posted on March 29, 2021.
The first set of responses to submitted questions under Step 2 [PDF] was posted on April 5, 2021. The responses were updated on a rolling basis until May 7, 2021.
NYSERDA also posted a Summary of Received ITC Comments [PDF] regarding whether the Tier 4 RFP should be amended to introduce a new provision in the Tier 4 Agreement that would share the benefits of any newly-enacted ITC or other direct financial support that would apply to transmission facilities associated with Tier 4 Proposals. Comments were due and received on April 9, 2021.
Tier 4 Contract Awards
After a thorough vetting and scoring process, in September 2021 two contracts were recommended – the Clean Path NY project (CPNY) and the Champlain Hudson Power Express project (CHPE). Contracts were negotiated for both projects and submitted to the Public Service Commission for approval and public comment on November 30, 2021. The contracts for CHPE [PDF] and CPNY [PDF] and the accompanying Petition [PDF] are available on the Department of Public Service’s website under Case Number 15-E-0302. The Public Service Commission approved the Tier 4 contracts by Order of April 14, 2022 [PDF], subject to limited contract clarification and similar requirements.
NYSERDA and DPS Staff concluded that the 2022 Tier 4 contracts fulfill the Commission’s mandate. At this time, NYSERDA does not plan to issue another Tier 4 RFP. NYSERDA will continue its other procurement programs, including Tier 1 for solar and land-based wind projects, as well as offshore wind to continue progress towards the State’s Climate Act goals.