New York Ne ork & Ne New Jersey Update—Ju July y 2018 Ne Netw twork rk Membe mber r Webi bina nar Hosted by: William O’Hearn, Communications/Outreach Manager, NJ and NY Elizabeth Barminski, Working Group Coordinator
Introduction • Rapid response, multimedia outreach • Based on July 19 (NJ) hearing and July 23 (NY) Technical Conference • Agenda: NJ and NY, each followed by Q&A • Deadlines: 7/30 for NY Bight comments to BOEM • 8/10 5:00 pm NYSERDA comments on Request for Information • Coming Up: 8/20 ‘Time for Turbines’ event in Atlantic City
Logistics • Attendees will be on “mute” during presentation • Please submit questions via the Chat function, and we will respond to them during the Q&A break after each state section • If you have any difficulties, please email Lizzie at Elizabeth@offshorewindus.org • The recording and slides from this webinar will be available on the member-only section of our website next week
Network’s Approach • Regional and international perspective • Lessons learned from Europe and other US states • Focus on building the supply chain for all East Coast states • MA, RI and CT are working together; NY and NJ must also • Every state wants the ports, infrastructure, mfg. and jobs—plenty to go around
Some Shared Themes • New York and New Jersey both plan RFPs by end of 2018 • Both states encouraging competition—and cooperation • Both states operating in the NY Bight Region of the OCS • NJ BPU and NYSERDA looking for feedback on the solicitation and selection process • Both using a form of ORECs as funding mechanism
New Jersey Issues—Consensus • Open, Orderly, Multi-Year, Predictable Process • Phased in over time to take advantage of falling costs • Speed is essential; federal tax incentives expire at end of 2019 • Competitive bidding brings down costs • Long-term contracts offer stability
Size of Bids • Orsted: Multiple bids, or one full 1100MW bid to save on costs • Deepwater Wind: q No minimum bid size of 400 MW. q Developers should be required to submit a standard bid size of 400 MW and be allowed to submit larger and smaller bids, as was the case in MA. q Smaller bids, don’t give entire RFP to a single bidder • Equinor (Statoil): Multiple bids
Funding Mechanisms 1. Fixed OREC—Locked price over life of contract 2. Index OREC—Adjusts from month to month • NJ BPU discussed funding model on Wednesday • New York requires two separate bids per bidder, one for Fixed OREC and one for Index OREC
Other Considerations • Supply Chain flexibility across state lines—don’t be too restrictive re. local companies • Navigation—allow for more setbacks along shipping lanes • Environmental—marine mammals, fish, birds • Commercial fishing—did not testify, but continue outreach • Workforce development & training—no testimony on this, but critical for hitting deadlines and controlling costs (and safety)
New Jersey Next Steps • Offshore Strategic Planning Team—Named shortly • NJ OREC model—Proposed rule published in NJ Register in few weeks; formal rule by end of year • RFP by end of year • Energy Master Plan—June, 2019
Ne New Jersey Q& Q&A
New York Overview • Further along in their offshore wind process • Completed Energy Master Plan • Offshore Wind Policy Paper • 800MW Solicitation • Request for Information (RFI)
New York RFI • NYSERDA will issue its first Request for Proposals in the fourth quarter of 2018 • NYSERDA will consult and coordinate with NYPA and LIPA • A second solicitation may be issued in 2019 • NYSERDA will procure Offshore Wind Renewable Energy Credits (ORECs) from awarded facilities • Order places an obligation for Load Serving Entities (LSEs) to support these new offshore wind resources through the purchase of ORECs from NYSERDA
New York RFI Submission • NYSERDA seeks input into the development of its 2018 RFP • NYSERDA issued an RFI on July 20, 2018. The RFI is available at http://www.nyserda.ny.gov/osw-rfi • With this RFI, NYSERDA seeks to gather stakeholder input in a number of important areas regarding the RFP, including schedule, quantity, price, non- price evaluation criteria, and evaluation metrics. • Comments are due in response to this RFI on August 10, 2018 by 5:00 p.m. Eastern Time. • Submit responses to offshorewind@nyserda.ny.gov with the subject “RFI OSW-2018 Comments”.
RFI Content • Responses should be concise and focused on areas where the respondent has particular interest or expertise. • RFI is in a “questions” format. Respondents are not required to answer all questions and should focus on questions relevant to their field of expertise. • Responses should be less than 30 pages, in Microsoft Word or searchable PDF form, and without technical attachments. • Respondents should provide only information that can be made public by NYSERDA. • All responses to the RFI will be published on NYSERDA’s website as submitted and should therefore not contain any confidential or proprietary information.
NYSERDA Scoring Criteria • 70% Bid Price--Same weighting as Renewable Energy Standard Tier 1 and also uses a Net Present Value calculation • 20% Economic Benefits--Must include a local content requirement, but has discretion in designing • 10% Project Viability--Increase weight from Renewable Energy Standard Tier 1 solicitations to account for expiring federal tax credits
New York Hybrid Procurement Approach • Each proposal is required to include two bids, one for a fixed OREC price (Fixed OREC) and one for an adjustable OREC price (Index OREC) • NYSERDA has authority to award a contract for either contract structure, but if an Index OREC is selected, the contract will specify conditions that may trigger a reversion to the Fixed OREC • The two bids will be weighted and the 70% price component of the bid will be scored based on this combined weighted value • NYSERDA may employ the use of a benchmark price above which a contract will not be awarded • NYSERDA has discretion in specifying the contract term, which will be between 20 and 25 years
Minimum and Multiple Bids The RFI Asks: • Should the 2018 RFP prescribe a minimum capacity or a minimum annual OREC quantity per bid, and if so, what should the minimum be? Should the 2018 RFP prescribe a maximum capacity or annual OREC quantity per bid, and if so, what should the maximum be? • Should the 2018 RFP allow bidders to submit multiple bids with differing capacity or OREC quantities? Should this be a continuous range, or should specific discrete target quantities be prescribed by NYSERDA? • What should the RFP include to promote economic development or tax benefits?
Bid Price Evaluation (Index ORECs) The RFI Asks: • What weighting factors should be selected and why? • What price evaluation lessons can be learned from procurements in other jurisdictions? • How should the maximum acceptable bid price be determined? • The Index OREC bid prices will have to be adjusted by values for energy and capacity in order to be compared directly to the Fixed OREC bids. How should this adjustment be performed? • What other provisions should be included in the RFP to allow for more competitive pricing?
New York Next Steps • Technical Conference webinar recording and slides will be available • NYSERDA technical working groups will continue to research many of these issues • RFP by end of year
Ne New York ork Q& Q&A
Recommend
More recommend
