LIPA Issues requests for proposals for new projects
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, 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.”
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 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 are intended to replace approximately 1,000 MW of 1960Â’s and 1970Â’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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Local lawyers told BNamericas that the measure may reduce fuel and power prices in the short term but it is unlikely to produce any major effects in the medium and long term.
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The bill will become law…
