The Long Island Power Authority (LIPA) on Oct. 18 issued two separate requests for proposals (RFPs) asking developers to propose projects to be part of Long Island’s future energy supply.
One proposal is for variable-sized renewable energy projects. The other is to begin replacement of Long Island’s fleet of “peaking” generation facilities, installed as early as the 1960s and nearing retiremen. Both RFPs are part of a comprehensive long-term energy strategy approved by the LIPA board of trustees in October 2012.
The RFP for Generation, Storage, and Demand Response Resources will seek to replace current peakers with a variety of more efficient resources to be in service by 2019 and earlier if possible. The competitive procurement for new, On-Island, Renewable Capacity and Energy such as solar, offshore wind, and fuel cells, for up to 280 MW of capacity by 2018.
“These RFPs are part of a balanced and progressive energy strategy for Long Island,” said LIPA Chief Operating Officer John McMahon in an Oct. 18 statement. “These RFPs are intended to have resources added to the LIPA system that are smaller in size and strategically located to provide the greatest overall value to our customers.”
RFP for peaker replacements looking for projects to be in operation by 2019
Specifically, the RFP for generation is seeking as much as 1,630 MW in the form of new peaking or distributed generation, energy storage and demand response resources. These newer sources of energy are intended to replace about 1,000 MW of 1960s and 1970s vintage peaking units currently under contract to LIPA and will result in modern, cleaner and more efficient generation while meeting projected load growth.
This generation RFP, with the proposal submittal deadline being March 31, 2014, has three objectives:
- To replace old and inefficient peaking generation with new resources that can be available for service no later than May 1, 2019. Those resources could be in the form of peaking generation, energy storage and/or demand response. Some of the peaking generation will need to have black start capability.
- To procure additional resources to meet projected load growth and to defer the need to construct costly transmission system upgrades on the East End of Long Island.
- To install up to 150 MW of energy storage resources that would assist black start operations by serving as a load and also complement planned increases in renewable resources.
Limits put on renewable projects (like biomass) that are fuel-fired
The long range plan adopted by the LIPA Trustees is expected to increase renewable energy projects and energy efficiency to a total of more than 1,000 MW by 2022, making non-fossil energy a material component of the Long Island electric resource profile.
Under the renewables RFP, with proposals also due by March 31, 2014, the minimum renewable energy generating capacity for each project or point of interconnection is 2 MW nameplate capacity (AC). The maximum renewable energy generating capacity is 280 MW, with the exception of fuel-based renewables (e.g., biomass and fuel cells) which are limited to a maximum capacity of 40 MW. LIPA said it will not award any more than 40 MW of contracts under this solicitation for fuel-based renewables.
Renewables projects must adhere to the interconnection procedures associated with the applicable project capacity. Projects less than 20 MW must adhere to LIPA’s Small Generator Interconnection Procedures. Projects 20 MW or larger must adhere to the New York ISO Large Generator Interconnection Procedures.
Renewables projects must be commercially operable and providing renewable energy and related capacity to LIPA on or before Dec. 31, 2018. Projects must be electrically connected to the LIPA transmission and distribution system or provide a new transmission line or new transmission capacity onto Long Island. The selected developers will be required to execute a 20-year power purchase agreement with LIPA.
LIPA, a non-profit municipal electric provider, owns the retail electric transmission and distribution system on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens.