New York State Governor Kathy Hochul has announced the third solicitation, for hydro and wind assets, under the Competitive Tier 2 large-scale renewable energy procurement program, which is designed to retain existing renewable energy resources.
This announcement underscores the importance of the state’s baseline energy generation as a critical part of the expanded Clean Energy Standard and supports New York’s goal to obtain 70% of the state’s electricity from renewable sources by 2030 on the path to a zero-emission power grid, the New York State Energy Research and Development Authority said.
Through this solicitation, NYSERDA seeks proposals to procure Tier 2-eligible renewable energy certificates (REC) from existing privately-owned hydropower and land-based wind generators in New York State that entered commercial operation before Jan. 1, 2015. NYSERDA’s procurement approach provides the opportunity to increase the amount of locally-produced renewable energy under contract with New York State while still allowing community choice aggregations to negotiate the best price and terms on energy supply, products and services for their customers.
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A REC represents the environmental attributes of 1 MWh of electricity generated from a renewable source. Launched in January 2021, the Competitive Tier 2 program is funded through a Tier 2 REC obligation required of load serving entities (LSE). New York State’s LSEs are required to purchase Tier 2 RECs from NYSERDA each year. Demand for Tier 2 RECs has grown substantially as CCAs have expanded and businesses seek clean energy choices as part of their environmental, social and governance (ESG) goals.
“New York’s comprehensive approach to greening the state’s power grid is helping create a thriving and competitive renewable energy market to meet the growing demand for these important resources,” Governor Hochul said. “By keeping existing hydropower and wind energy facilities in New York, we are protecting the good-paying operations and maintenance jobs that will ensure these resources continue to produce clean electricity for generations to come.”
NYSERDA will evaluate and select the competitive proposals based on the lowest price received. Proposals are due on Sept. 15, 2022, by 3:00 p.m. NYSERDA expects to announce the awards in October 2022.
“Under Governor Hochul’s leadership, we are using every tool at our disposal to diversify New York’s energy mix and ensure all in-state renewable resources are contributing to the build-out of the resilient zero-emission power grid of the future,” said NYSERDA President and Chief Executive Officer Doreen M. Harris. “NYSERDA’s Competitive Tier 2 solicitation will attract the market competition needed to deliver affordable renewable energy for New Yorkers while helping to improve local air quality and foster economic growth in host communities.”
The first two rounds of awards resulted in three projects to retain enough renewable energy in New York State to power nearly 8,300 homes and help support ongoing operations of these existing renewable energy facilities. This solicitation also complements the state’s actions to more quickly advance development of large renewable energy projects, markedly decreasing fossil-fuel generation and harmful emissions in the state, NYSERDA said.
New York State’s climate agenda calls for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy. New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70% renewable energy generation by 2030, and to reach economy-wide carbon neutrality.
NYSERDA offers objective information and analysis, innovative programs, technical expertise and support to help New Yorkers increase energy efficiency, save money, use renewable energy and reduce reliance on fossil fuels.
