Seeks to Advance the Public–Private Partnership for Major Wind Project off Coast of Long Island

Governor David A. Paterson today announced that steps are being taken to advance the development of offshore wind power, which will create clean energy jobs and help the State meet its energy needs in an environmentally responsible way. The Governor signed a memorandum of understanding (MOU) with the U.S. Department of the Interior (DOI) and nine other east coast governors to create an Atlantic Offshore Wind Energy Consortium. The Consortium will facilitate the partnership between the Atlantic states and DOI in the development of appropriate offshore wind energy, for which DOI is responsible for issuing leases.

“Positioning New York as a leader in the clean energy economy is one of my top priorities,” Governor Paterson said. “This will help to create jobs, provide for our energy needs, improve our economy, and make our environment cleaner for all New Yorkers. I look forward to working with the Department of the Interior and the Atlantic coast governors to coordinate our efforts and ensure the development of our offshore wind energy resources in a responsible manner.”

This agreement comes shortly after a separate MOU was signed by the Long Island Power Authority (LIPA), Consolidated Edison (Con Ed) and the New York Power Authority (NYPA), agreeing to engage in pre-development activities and studies as this collaboration looks toward the proposed development of the Long Island – New York City (LI-/NYC) Off Shore Wind Project. This intrastate MOU marks the first regional partnership between these public and private utility service providers.

“At the same time we are working collaboratively with the Department of the Interior and Atlantic coast states to share best practices and promote environmentally responsible offshore wind energy development regionally, New York is taking another step towards advancing its own Long Island – New York City offshore wind project,” Governor Paterson said. “I thank LIPA, NYPA, and Consolidated Edison for moving forward on this public – private partnership to help advance the State’s clean energy development.”

The public – private partnership project would be sited approximately 13 miles off the Long Island coastline emanating from the Rockaway Peninsula in the Atlantic Ocean and would be designed for 350 MW of generation, with the ability to expand it to 700 MW, giving it the potential to be the largest offshore wind proposal in the country. A transmission interconnection study by LIPA and Con Ed concluded that an interconnection for up to 700 MW of wind power would be feasible, and an application to interconnect the offshore wind project has been filed with the New York Independent System Operator (NYISO).

The LIPA/Con Ed/NYPA MOU provides for a cost sharing mechanism among the partners of the collaborative to engage in the following:

• Develop a business model and issue a Request For Proposals (RFP) and negotiate a Power Purchase Agreement;
• Evaluate RFP and other technical, economic and environmental aspects of proposed offshore project;
• File land lease application with United States Department of the Interior’s Minerals Management Service;
• Conduct economic, environmental, geologic, wind, equipment and visualization studies in an effort to assess the proposed off-shore wind project; and
• Engage in a coordinated public outreach & education effort and assess public feasibility.

The Collaborative, consisting of the aforementioned utility companies and authorities as well as the City of New York/New York City Economic Development Corporation, New York State Energy Research and Development Authority, Metropolitan Transportation Authority, and the Port Authority of New York & New Jersey, anticipates issuing a Request for Proposals later this year. For more information please visit: http://www.linycoffshorewind.com.

The concept for the offshore wind project emanated from Governor Paterson’s Renewable Energy Task Force and is consistent with the State’s ‘45 by 15’ clean energy initiative, which establishes the goal for New York State to meet 45 percent of its electricity needs through improved energy efficiency and renewable sources by the year 2015. The offshore wind project is also aligned with City of New York Mayor Michael Bloomberg’s PlaNYC goal to reduce greenhouse gas emissions in New York City 30 percent by 2030. The project would significantly boost the installed capacity of renewable energy on Long Island and in New York City and provide clean energy to thousands of households, businesses and public institutions.

In a similar effort, NYPA is pursuing development of up to 500 megawatts of wind generating projects in the New York State waters of Lake Erie and/or Lake Ontario. NYPA received five proposals from developers on June 1, and anticipates making award announcements in early 2011. For more information on this initiative please click here. For more information about what this program will mean for New York, please visit Straight Talk, Straight Answers.

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The following quotes were provided in support of the major wind project off the coast of Long Island:

Mayor Michael R. Bloomberg said: “Today’s agreement is the first step in expediting the permitting process for offshore wind projects along the Atlantic seaboard, including the Long Island-New York City offshore wind farm, which has the potential to provide clean energy to hundreds of thousands of homes and businesses in New York City. This will reduce our dependence on fossil fuels, promote economic development, and help us achieve our PlaNYC goals of improving air quality and reducing greenhouse gas emissions.” 

Kevin S. Law, President and CEO of LIPA, said: “The Governor’s actions reaffirm his commitment to making offshore wind a reality in New York. The LI-NYC Offshore Wind Project will diversify our energy portfolio, strengthen the local economy by creating quality clean energy jobs, and reduce our dependency on fossil fuels.”

President and CEO of New York Power Authority (NYPA) Richard M. Kessel said: “This LIPA/Con Ed/NYPA Memorandum of Understanding is an important step by the leading partners of the Long Island-New York City Offshore Wind Collaborative to explore the opportunity to develop offshore wind power as a clean renewable resource for generating electricity in New York State. Governor Paterson has set an ambitious goal of using renewables like wind to produce 30 percent of New York’s power by 2015 and through this memorandum the New York Power Authority joins Con Edison and the Long Island Power Authority to use our collective strengths toward this effort.”

Kevin Burke, Chairman and CEO of Con Edison, said: “The LIPA/Con Ed/NYPA MOU strengthens our collaborative effort to explore the technical, environmental and economic feasibility of developing an offshore wind project for New York City and Westchester County. I remain confident that if these challenges can be met, the project will produce enormous benefits for our region.”