New York Governor: Second Competitive Tier 2 Solicitation

Governor Cuomo Announces Second Competitive Tier 2 Solicitation to Retain New York’s Existing Renewable Energy Resources

New York (STL.News) Governor Andrew M. Cuomo announced the second solicitation under the large-scale renewable energy procurement program known as Competitive Tier 2, which will retain New York’s existing renewable energy resources, reduce statewide carbon emissions, and help support the state’s economic recovery by increasing in-state competition for lower energy costs.  Today’s announcement underscores the importance of the State’s baseline energy generation as a critical part of the expanded Clean Energy Standard and supports Governor Cuomo’s goal to obtain 70 percent of the state’s electricity from renewable sources by 2030.

“As part of the state’s wide-ranging strategy to transition to a zero-emission power sector, New York is helping to create a self-sustaining private renewable energy market to meet the growing demand for these vital resources,” Governor Cuomo said.  “Providing additional opportunities to support existing generators through this program will protect the pivotal role they serve in the state’s energy future, as we continue to integrate significant amounts of clean energy into our grid to fight climate change and build resiliency.”

Through its second Competitive Tier 2 solicitation, the New York State Energy Research and Development Authority is seeking proposals to procure Tier 2 eligible RECs from existing privately-owned hydropower and land-based wind generators in New York State that entered commercial operation prior to January 1, 2015.  NYSERDA’s procurement approach will increase the amount of locally-produced renewable energy under contract with New York State, while still allowing Community Choice Aggregations to continue to voluntarily negotiate the best price and terms on energy supply, products, and services for their customers.

NYSERDA will evaluate and select the competitive proposals based on the lowest price received.  Proposals are due on September 9, 2021, by 3:00 p.m.  Interested proposers can apply here.  NYSERDA expects to announce the awards in October 2021.

A webinar will be held on August 19, 2021 at 3:30 p.m. to provide interested proposers with an opportunity to learn more about this solicitation.  Those interested in the webinar can sign up here, and are encouraged to register and submit questions in advance.

Doreen M. Harris, President and CEO, NYSERDA said, “NYSERDA’s Competitive Tier 2 program is helping to diversify the state’s energy portfolio and maximizes the contributions and potential of New York’s existing renewable resources to support our clean energy and climate goals.  This solicitation will further spur market competition to attract and retain low-cost renewable energy for New Yorkers and reduce statewide carbon emissions to ensure a cleaner environment for generations to come.”

As part of its Competitive Tier 2 solicitations, NYSERDA will contract with awarded generators for the purchase of Renewable Energy Certificates.  A REC represents the environmental attributes of one megawatt hour of electricity generated from a renewable source.  Launched in January 2021, the Competitive Tier 2 program is funded through a new Tier 2 REC obligation required of load serving entities.  New York State’s LSEs are required to purchase Tier 2 RECs from NYSERDA each year.

Today’s announcement builds on NYSERDA’s initial Competitive Tier 2 awards, which in May 2021 resulted in awards to two proposers for three projects that are expected to retain enough renewable energy in New York State to power nearly 8,300 homes.  Project-specific details for the three awarded projects are now available on Open NY.  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.

Anne Reynolds, Executive Director, Alliance for Clean Energy said, “To reach the State’s ambitious 70% renewable electricity goal at least-cost, we need to keep the clean energy we already have, as well as build new renewable energy projects.  The member companies of the Alliance for Clean Energy welcome this second solicitation for “Tier 2″ resources and hope that the contracts that result will significantly contribute New York’s clean energy transition.”

New York State’s Nation-Leading Climate Plan

Governor Cuomo’s nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic.  Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality.  It builds on New York’s unprecedented investments to ramp-up clean energy including over $21 billion in 91 large-scale renewable projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.2 billion in NY Green Bank commitments.  Combined, these investments are supporting more than 150,000 jobs in New York’s clean energy sector in 2019, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035.  Under Governor Cuomo’s leadership, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state’s 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.