Offshore Wind Renewable Energy Credits

The Clean Energy Standard requires load serving entities (LSEs)load serving entities (LSEs) –
These are often called utilities or electric companies, but LSEs include any entity or organization: utilities, municipal electric systems and electric cooperatives, authorized or required to supply energy or energy-related services to retail customers.
to help New York meet its clean energy and climate goals by requiring the purchase of renewable energy credits and zero emissions credits. In a similar vein, the Offshore Wind Standard will help achieve the State’s 2030 climate and energy goals using offshore wind renewable energy credits (ORECs).

An OREC represents one megawatt-hour (MWh) of electricity generated from offshore wind resources and consumed by retail customers in New York State. ORECs will provide financial support for investments in offshore wind energy and stimulate the development of the State’s offshore wind industry.

NYSERDA will purchase ORECs from eligible offshore wind developers and resell them to the LSEs to meet their obligations under the Offshore Wind Standard. The portion of ORECS purchased by each LSE will be proportional to the amount of electricity provided by the LSE in a year (in regulatory terms, ORECs will be proportional to load served in a given compliance year).

The deadline for NYSERDA and all LSEs to complete OREC agreements for the first phase of offshore wind energy development is March 31, 2019, although actual payments will not commence until the contracted offshore wind projects begin to generate ORECs.