2023 Offshore Wind Solicitation (Closed)

Under the New York State Public Service Commission’s (PSC) Order Establishing Offshore Wind Standard and Framework [PDF] for Phase 1 Procurement, issued on July 12, 2018, Order Adopting Modifications to the Clean Energy Standard [PDF] issued on October 15, 2020 in Case No. 15-E-0302, the Order on Power Grid Study Recommendations [PDF] issued on January 20, 2022 in Case Nos. 20-E-0197, 18-E-0071, and 15-E-0302, and the Public Service Commission (Commission) Order Denying Petitions to Preserve Competitive Renewable Energy Market and Protect Consumers issued on October 12, 2023 (the October 2023 Order), NYSERDA sought to procure Offshore Wind Renewable Energy Credits (ORECs) through a fourth solicitation (ORECRFP23-1). NYSERDA competitively selected two offshore wind projects for contract negotiation: Empire Wind 1 (developed by Equinor) and Sunrise Wind (developed by Ørsted and Eversource).

On February 29, 2024, Governor Hochul announced the State has awarded two offshore wind projects for contract negotiation as a result of its fourth offshore wind solicitation – Empire Wind 1, a planned 810-megawatt project (developed by Equinor), and Sunrise Wind, a planned 924-megawatt project (developed by Ørsted and Eversource). The competitively-selected projects will create more than 800 near-term construction jobs and invest $2 billion in near-term enhanced economic development statewide, including developer-committed investments to support disadvantaged communities. The projects, totaling over 1,700 megawatts of clean energy (enough to power one million New York homes), will be the largest power generation projects built in New York State in over 35 years once they enter operation in 2026, and will continue progress towards achievement of the State’s Climate Act goal to develop 9,000 megawatts of offshore wind energy by 2035.

The fourth offshore wind solicitation advances the actions set forth by Governor Hochul in the State’s 10-Point Action Plan, which offers insights on how the Governor’s Administration plans to overcome macroeconomic and inflationary challenges that have impacted the renewable energy sector. These awards are conditional on successful contract execution. In addition, the Community Offshore Wind 2 project has been waitlisted and may be considered for award and contract negotiation at a later date.

Empire Wind 1 and Sunrise Wind were previously awarded by NYSERDA in 2019 as part of NYSERDA’s first offshore wind solicitation. As part of these awards, the projects will be held to new contract provisions that bring additional benefits to the State, including:

• New economic benefit commitments above what was originally contracted, including $32 million committed to community-focused investments in New York’s disadvantaged communities and $16.5 million toward wildlife and fisheries monitoring.
• Commitment to purchasing a minimum of $188 million of U.S. iron and steel, supporting investments in the U.S. manufacturing and the New York Buy American Act. 
• Requirements for Labor Peace Agreements for operations and maintenance services.

Together, Empire Wind 1 and Sunrise Wind are expected to deliver $6 billion in in-state spending and support nearly 1,000 jobs over the lives of the projects. They will deliver a host of benefits in line with Climate Act goals, with over $1 billion invested in disadvantaged communities, $117 million supporting minority, women-owned, and veteran-owned businesses, and over $43 million in workforce investments.

This award will usher in the construction and operation of the South Brooklyn Marine Terminal assembly and staging port, jump-starting over 400 construction jobs this year to transform the currently inactive 70-acre waterfront site in a disadvantaged community into a thriving offshore wind port. The projects will also invest more than $80 million in construction and manufacturing associated with advanced foundation components at the Port of Coeymans, and continue to make investments totaling $135 million in electric grid infrastructure on Long Island and $200 million in transmission related investments, backed by a Project Labor Agreement with Long Island skilled tradesmen and women, including heavy equipment operators, electricians, and line workers.

Empire Wind 1 and Sunrise Wind are now on a path to project completion, driving local investments and enhanced economic benefits to New York State at cost-competitive rates. The average bill impact for customers over the life of these projects will be approximately 2%, or about $2.09 per month. The weighted average all-in development cost of the awarded offshore wind projects over the life of the contracts is $150.15 per megawatt-hour, which is on-par with the latest market prices.

For more information on the awarded projects, please see New York’s Offshore Wind Projects webpage.

Closed Solicitation, ORECRFP23-1

On November 30, 2023, NYSERDA announced the launch of New York’s fourth competitive offshore wind solicitation as part of New York’s 10-Point Action Plan to bolster the State’s growing large-scale renewable industry. The expedited solicitation supports progress toward achieving New York’s Climate Leadership and Community Protection Act (Climate Act) goals of sourcing 70% of New York’s electricity from renewable sources by 2030 and developing 9,000 megawatts of offshore wind by 2035.

On January 25, 2024, NYSERDA received responses to New York’s fourth offshore wind solicitation with six total bids for three projects from three offshore wind developers, including Community Offshore Wind LLC with the Community Offshore Wind 2 project, Empire Offshore Wind LLC with the Empire Wind 1 project, and Sunrise Wind LLC with the Sunrise Wind project.

On October 26, 2023, NYSERDA issued a Request for Information to solicit public comment on proposed adjustments to this Request for Proposals, including an expedited timeline and streamlined evaluation process. Based on that feedback, this fourth solicitation includes key provisions to advance New York’s responsible and forward-thinking approach to growing the State’s offshore wind portfolio while meeting the needs of the industry and growing market.

• To allow for expedited preparation and review of proposal submissions, submission requirements have been significantly streamlined compared with ORECRFP22-1. Bid fees have also been reduced.
• ORECRFP23-1 provides flexibility for a variety of proposals, including for projects that currently hold contracts with NYSERDA but commit to conditional termination. NYSERDA’s updated policy regarding OREC agreement termination and contract security is detailed in Section 2.1.1.1 of the RFP, which replaces and supersedes the policy that was published on November 16, 2023.
• In addition to required Environmental Mitigation Plans, Fisheries Mitigation Plans, Stakeholder Engagement Plans, and New York Workforce and Jobs Plans, Proposers must demonstrate a detailed understanding of potential benefits and burdens to Disadvantaged Communities from their projects. This requirement aligns with the principles of a just transition outlined in the Climate Act.
• Consistent with ORECRFP22-1 and promoting the intent of the New York Buy American Act, the solicitation sets a minimum U.S. iron and steel purchase requirement for all projects awarded to encourage domestic steel production and requiring developers to provide opportunities for U.S.-based steel suppliers to participate in the growing offshore wind industry.
• As was the case in ORECRFP22-1, to help ensure the long-term viability of projects, Proposals may include a price structure where the project’s price would be subject to a one-time adjustment to reflect changes in certain price indices subsequent to the Proposal Submission Deadline. Proposals may also include a price structure that contemplates an Interconnection Cost Sharing approach. Proposals including these adjustments will be evaluated as described in Section 4 of the RFP.

Submitted Proposals

The public versions of the ORECRFP23-1 proposals are included below:

ORECRFP23-1 Solicitation Schedule

Event	Date (all times ET)
RFP Release Date	November 30, 2023
Responses to Written Questions [PDF]	Posted January 16, 2024
NYSERDA Portal Open for Registration	January 16, 2024
NYSERDA Portal Closed for Registration and -Open for Proposal Submission	January 19, 2024
Proposal Submission Deadline	January 25, 2024, 3:00 p.m. ET
NYSERDA Award Notification Date	February 29, 2024
Contract(s) Executed	Expected Q2 2024

Please note that the above dates are subject to change.

ORECRFP23-1 Documents

• Request for Proposals (ORECRFP23-1) (Updated December 29, 2023)
• Appendix A - Proposer Certification Form
• Appendix B.1 - Economic Benefits Claims and Documentation Requirements
• Appendix B.2 - Disadvantaged Community Impacts
• Appendix C - Elements of the Fisheries Mitigation Plan
• Appendix D - Elements of the Environmental Mitigation Plan
• Appendix E - Elements of the Stakeholder Engagement Plan
• Appendix F - Meshed Ready Technical Requirements
• Appendix G - New York Jobs and Workforce Plan
• Appendix H - Offshore Wind Renewable Energy Certificate Standard Form Purchase and Sale Agreement (Updated December 29, 2023)
• Redline of Appendix H vs Nov 30 version (Updated December 29, 2023) [PDF]
• Appendix I - Offer Data Form
• Appendix J - Master Offers Form
• Appendix K. Proposal Submission Guide (Updated January 16, 2024)
• Appendix L - Conditional Termination Agreement
• Appendix M - Non-Disclosure Agreement (Posted December 29, 2023)
• Executive Order 16 and Explanation

Eligibility Requirements

In accordance with Public Service Commission Orders, eligibility is limited to projects that:

• Are located off the coast of the United States
• Become operational on or after January 1, 2015
• Demonstrate delivery of electricity into New York
• Have obtained a lease (executed or provisional) from the Bureau of Ocean Energy Management (BOEM)

Additional information regarding OREC eligibility are outlined in Section 2 of the RFP.

This RFP supports the responsible and cost-effective development of offshore wind by requiring proposers to:

• Include commitments to negotiate project labor agreements, labor peace agreements and prevailing wages
• Submit environmental and fisheries mitigation plans describing development practices that will minimize impacts to fisheries and the environment
• Submit stakeholder engagement and workforce development plans to ensure alignment with the just transition priorities of New York’s Climate Act
• Participate in New York State’s offshore wind technical working groups: Environmental, Commercial Fishing, Jobs and Supply Chain, Maritime, and Environmental Justice
• Consult with relevant State agencies around fishing, wildlife, and the environment
• Make environmental data collected during site assessment publicly available
• Implement lighting controls to minimize nighttime visibility

Evaluation Criteria

The Public Service Commission Orders prescribe the evaluation of proposals to be based upon an ultimate weighting of 70% price considerations, 20% economic benefits to New Yorkers, and 10% project viability.

Responses to Written Questions

NYSERDA’s Offshore Wind Team has released a complete set of responses to questions, available here: ORECRFP23-1 Responses to Written Questions [PDF]. Some questions have been addressed directly through changes to the RFP documents. Please review the updated RFP documents under “ORECRFP23-1 Documents” to view all document modifications.

The deadline for submission of questions for the ORECRFP22-1 was December 27, 2023. NYSERDA published a set (1-52) of responses to written questions on December 29, 2023 and one update (53) on January 16, 2024.

To maintain the integrity of the competitive process, questions about the RFP were requested to be stated in a generic and non-project specific manner such that the question and answer could be anonymized and published in accordance with Section 1.5 of the RFP. It was requested that no information should be shared with NYSERDA regarding the specifics of a potential proposal if it is not able to be published in this manner.

Communications and Updates Regarding the RFP

All relevant documents pertaining to this RFP will be available on this site. Any changes to the RFP process or documents will be posted on this site. Interested parties are advised to check this website for updates.