LIPA Issues requests for proposals for new projects

LIPA Energy RFPs aim to replace aging peakers with distributed generation, energy storage, demand response, and on-island renewables like solar, offshore wind, and fuel cells, boosting reliability and efficiency across Long Island.

Uniondale, NY – Recently, the Long Island Power Authority LIPA 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 and the other is to begin replacement of Long Island's fleet of "peaking" generation facilities, installed as early as the 1960s and nearing retirement, with newer, cleaner distributed resources. 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 peaking generation with a variety of more efficient resources to be in service by 2019 and earlier if possible. Separately LIPA issued a competitive procurement for up to 280 megawatts MW of new, On-Island, Renewable Capacity and Energy such as solar, offshore wind resources on the South Shore, and fuel cells for up to 280 MW of capacity by 2018.

Together, these RFPs will help to maintain system reliability for years to come while further diversifying LIPA’s resource portfolio. "These RFPs are part of a balanced and progressive energy strategy for Long Island,” said LIPA Chief Operating Officer John McMahon. “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 and ratepayers across Long Island.”

Specifically, the RFP for Generation, Storage, and Demand Response Resources is seeking as much as 1,630 MW in the form of new peaking or distributed generation, energy storage and demand response resources. The peaking facilities are typically called on to operate for relatively few hours of the year; the facilities are, however, critical for maintaining system reliability as energy news has often highlighted when experiencing periods of extreme heat like we had during the week of July 15th, 2013 or any other system contingency.

These newer sources of energy, including wind power in New York initiatives, are intended to replace approximately 1,000 MW of 1960’s and 1970’s vintage peaking units currently under contract to LIPA and will result in modern, cleaner and more efficient generation while meeting projected load growth.

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.

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