On June 20, 2023, the New York Independent System Operator, Inc. (“NYISO”) announced that it selected a transmission project proposed by Propel NY, a partnership between New York Transco, LLC and the New York Power Authority, to meet the Long Island Offshore Wind Export Public Policy Transmission Need. The selected project is expected to facilitate the integration of at least 3,000 MW of offshore wind energy that is anticipated to be interconnected to Long Island.
Background
New York state policy under the Climate Leadership and Community Protection Act mandates significant steps to achieve 100% carbon-free electricity by 2040, including the procurement of 9,000 MW of offshore wind by 2035. Although NYISO anticipated that the Long Island coast would be a favorable location for siting offshore wind generation given its close proximity to major load centers, it also anticipated that, without reinforcements, the capacity of the current transmission system could result in the significant curtailment of that offshore wind energy output.
NYISO’s Public Policy Process permits NYISO to address the transmission needs driven by the public policy requirements identified by the New York Public Service Commission (“New York PSC”). In March 2021, the New York PSC issued an order identifying the need and scheme to increase export capability from Long Island to better accommodate the full output of offshore wind generation to be interconnected to Long Island, which is formally known as the Long Island Offshore Wind Export Public Policy Transmission Need (“Long Island Need”). The Long Island Need was designed as a multi-year, joint effort by a team of NYISO experts, the New York State Department of Public Service, developers, and stakeholders to address transmission needs in and around Long Island. In August 2021, NYISO thus began a competitive solicitation process to meet the identified need to deliver at least 3,000 MW of energy from offshore wind projects connected to Long Island. NYISO received a total of nineteen proposals from four developers.
NYISO’s Selected Transmission Project
On June 20, 2023, NYISO announced that its Board selected a proposal from Propel NY called Propel Alternate Solution 5. Propel Alternate Solution 5 will add three new underground cables connecting Long Island to the rest of the state and a 345 kV transmission line across western and central Long Island. It is expected to provide access to at least 3,000 MW of expected offshore wind generation, is estimated to cost $3.26 billion, and is required to be in service by May 2030. Propel NY is now expected to pursue the necessary permits and regulatory approvals to move forward with the project. This will include backing from the New York PSC for the siting of major utility transmission facilities under Article VII of the Public Service Law.
Some offshore wind developers, including those with projects off the Long Island coast, currently forecast commercial operation dates in advance of the Propel Alternate Solution 5’s required May 2030 in-service date. Nevertheless, once operational, the project is expected to significantly increase the transmission system’s ability to accommodate expected offshore wind project output and facilitate the delivery of at least 3,000 MW from Long Island to New York, while reducing the potential risk of offshore wind energy curtailment and in turn, supporting the state’s broader offshore wind policy goals.
For further information, please contact:
Diana Jeschke, Linklaters
diana.jeschke@linklaters.com
