On July 27, New York Governor Kathy Hochul announced the release of the state’s third competitive offshore wind solicitation (RFP), seeking to procure a minimum of 2,000 megawatts (MW) of new offshore wind generation capacity, as well as significant capital investment in New York’s bourgeoning offshore wind energy supply chain. New York’s Climate Leadership and Community Protection Act of 2019 established the goal of developing 9,000 MW of offshore wind capacity, the largest statutory goal to-date of any state in the country, by 2035. Combined with the 4,300 MW of offshore wind generation capacity procured through its prior two solicitations, the RFP will put the state more than two-thirds of the way towards reaching that target.
The European Commission seeks stakeholders’ feedback until 18 November on its proposal to define cross-border projects in the field of renewable energy generation that would be eligible to receive EU funding under Connecting European Facility instrument.
Continue Reading European Commission Opens Public Consultation to Define Selection Criteria for Renewable Energy Projects Eligible of EU Funding
This is the fifteenth in our series on “The ABCs of the AJP.”
Historically, offshore wind has made up a very small percentage of America’s total electricity generation portfolio. The winds of change are blowing, though, as the Biden Administration’s American Jobs Plan (“AJP”), among other federal actions, signals a new commitment to harnessing this renewable energy source. …
Continue Reading Optimism Abounds for Offshore Wind
On February 16, the Federal Energy Regulatory Commission (FERC) issued an order accepting an executed State Agreement Approach Study Agreement (Study Agreement) between PJM Interconnection, L.L.C. (PJM) and the New Jersey Board of Public Utilities (NJ BPU), pursuant to which PJM will solicit project proposals to expand or upgrade its transmission system to provide for the deliverability of 7,500 MW of offshore wind into New Jersey by 2035. New Jersey is the first state in the PJM region to use the State Agreement Approach, a supplementary transmission planning and cost allocation mechanism in PJM’s Operating Agreement designed to meet states’ public policy needs.
Continue Reading FERC Accepts Study Agreement to Assess New Jersey Offshore Wind Deliverability
In a move that further bolsters the state of New York’s status as a trailblazer in America’s energy transformation, on July 21, New York Governor Andrew Cuomo announced the largest combined renewable energy solicitations in U.S. history. New York is seeking up to 4,000 megawatts (MW) of offshore wind and onshore renewable energy capacity to help meet the resource goals established under its 2016 Clean Energy Standard and its 2019 Climate Leadership and Community Protection Act (CLCPA). The solicitations also contemplate a combined $400 million in public and private funding to upgrade the state’s port infrastructure in order to accommodate the development of the new offshore wind facilities. New York’s solicitations not only present an unprecedented market opportunity for offshore wind and other renewable developers, but also for businesses seeking to provide key construction and operations and maintenance products and services to the offshore wind industry.
Continue Reading New York Doubles Down On Offshore Wind and Sets Renewables RFP Record
On 4 April 2018, Covington’s client Building Energy, a multinational company operating in the renewable energy industry, signed a power purchase agreement (PPA) with the South African state owned utility Eskom Holdings SOC Ltd (Eskom) to build, own and operate a 147 MW wind plant in Roggeveld (on the border of the Western and Northern Cape provinces of South Africa). Building Energy had been awarded preferred bidder status under Round 4 of the South African Department of Energy Renewable Independent Power Producer Procurement (REIPPP) programme for the wind project in April 2015. The Roggeveld wind farm will generate around 613 GWh per year and the energy generated will provide energy to 49,200 households every year, while avoiding the emission of about 502,900 tons of CO2 emissions. Construction work is scheduled to begin in 2018 and the commercial operation date is foreseen to be in April 2021. Matteo Brambilla (Building Energy’s Managing Director for Africa and the Middle East) commented “We are delighted to have signed the agreement in the presence of Minister of Energy of South Africa, for the construction of the Roggeveld plant, which represents our first wind farm in South Africa. We are also excited to develop two of the 2.3GW of renewable energy projects allocated by South African Government in the first major investment deal under President Cyril Ramaphosa”.
Continue Reading The Roggeveld Wind Farm in South Africa
David Haughan, Stagiarie, Summer 2014, contributed to this post. Mr. Haughan was a legal trainee at the Brussels office of Covington and Burling LLP during the Summer of 2014. David studies at King’s College, London.
In a landmark decision (CJEU, C-573/12, Ålands Vindkraft AB v. Energimyndigheten) the Court of Justice of the European…
On December 24, the Federal Energy Regulatory Commission (FERC) and the Idaho Public Utilities Commission (Idaho PUC) signed a Memorandum of Agreement addressing their dispute regarding interpretation and enforcement of the Public Utility Regulatory Policies Act (PURPA).
PURPA requires that utilities purchase power from generators with certain renewable or other characteristics (called Qualifying Facilities, or QFs) at prices that reflect the utilities’ avoided cost of generating the power. FERC enforces the program but has left much of the implementation details to the states. In 2013, FERC had taken the unusual step of taking the Idaho PUC to Federal court regarding the state’s implementation of the law.
In 2011, the Idaho PUC lowered the maximum size of QFs eligible to receive avoided cost rates. A number of wind facilities at the time were in the final stages of negotiating purchase contracts with utilities but could not secure signatures until just after the effective date of the new lower size limit. The Idaho PUC rejected a number of the agreements because they exceeded the new maximum size limits, finding that purchase agreements must be executed prior to the effective date of the change in eligibility criteria.
Continue Reading FERC and Idaho PUC Settle PURPA Lawsuit
FERC recently approved the California ISO’s (CAISO) proposal to lower a bidding floor to more efficiently address a growing “over generation” problem due in part to increasing “variable energy” (i.e., typically renewable) resources. A bit of background is needed to understand the problem and the solution.
CAISO operates two bid-based energy spot markets to secure…