John Marciano Quoted in Power Finance & Risk on Bid Process for New York Renewables Work
Power Finance & Risk has quoted Akin Gump global project finance partner John Marciano in the article “N.Y. Renewable RFPs Attract Hundreds of Bids,” regarding requests for proposals being run by a New York utility company and a state agency with the goal of contracting up to 2.5 million MW from large-scale renewable projects.
The article reports that New York State Research and Development Authority (NYSERDA) is hoping to procure renewable energy credits for up to 20 years from eligible projects. New York Power Authority (NYPA) has accepted bids for power purchase agreements (PPAs), including pre-paid PPAs, also up to 20 years in length. NYPA has received more than 130 proposals totaling more than 9 GW from 51 project sponsors, while NYSERDA received 88 proposals totaling more than 4 GW from 30 project sponsors. Some sponsors participated in both RFPs, which are open to large-scale solar, wind, hydro and biomass projects.
Marciano, who is advising some of the bidders, said the strong showing is likely the result of a lack of availability of PPAs elsewhere. “Many of the states that have renewable portfolio standards are full for now, because the states have met their goals,” he said. “Utilities that would normally be signing PPAs with reasonable pricing and long tenors are saying they’ll start thinking about it in 2025.”
The breakdown of the bids is still not clear, according to the article. On that point, Marciano added, “One of the things they were asking for was bids relating to capacity,” said Marciano. “Will we see storage projects that are mixed in with others, so that you're taking the wind industry or the solar industry to the next level?”