LIPA issues Request for Proposals for up to 1,000MW in new, repowered power resources

Source: Long Island Power Authority

The Long Island Power Authority (LIPA) released a Request for Proposals (RFP) that seeks to purchase from experienced and qualified entities up to 1,000 megawatts (MW) of electric capacity, energy, and related services from new and/or repowered generation for a term of 20 years under power purchase agreement(s). 

LIPA’s 2010-2020 Electric Resource Plan released in February 2010 indicates that Long Island will need new resources in the 2016-2020 time-frame to meet electric reliability needs. To meet these needs and to modernize the power generation fleet under contract to LIPA, it is seeking up to 1,000 MW of Long Island-based power generation and/or off-Island power generation delivered by a new transmission cable, with such facilities to be in service as early as Spring of 2016. 

“As our population on Long Island continues to grow and our economy begins to improve, so will our need for energy and capacity in order to meet our reliability obligations set forth by the state,” said LIPA President and CEO Kevin S. Law. “Just as we requested proposals to operate LIPA’s electric grid, the issuance of this RFP will provide for a competitive and transparent process that will benefit our customers and our environment and will help LIPA continue to meet its capacity and generation obligations as well as to possibly replace existing power plants with more efficient and cleaner facilities.” 

The new resources will be secured through power purchase agreements (“PPAs”) having a 20-year term. 

The RFP seeks proposals from qualified entities interested in one or more of the following: 

• Developing a new on-Island generating facility with a minimum capacity of 100 MW; 

• Repowering existing on-Island generating facilities; 

• Developing a new off-Island generating facility with a dedicated transmission cable to Long Island providing a minimum of 100 MW; and 

• Developing a new or using an existing off-Island generating facility along with a new transmission cable to Long Island providing a minimum of 250 MW. 

LIPA seeks to select projects that provide the overall best value to its ratepayers, while minimizing or limiting risks to LIPA’s customers and offering additional operational or other benefits to LIPA’s customers. 

The RFP requires that proposals be submitted to LIPA by January 12, 2011. After a thorough qualitative and quantitative assessment, including a preliminary environmental review, LIPA anticipates potential project award(s) in Fall 2011 to Winter 2012. Following selection, LIPA would negotiate PPA(s) with finalists and the proposed project(s) would undergo environmental review. 

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