WASHINGTON - The Long Island Power Authority may issue bonds if it decides to take and ownership interest in an offshore wind farm that it plans to develop with Consolidated Edison Inc. more than 13 miles off the coast of New York City's Rockaway Peninsula, LIPA officials said last week.
The proposed offshore wind farm, which would provide power to both entities, has the potential to be the largest in the country, according to the utilities. LIPA and Con Edison have formed a public-private partnership to develop the wind farm.
The onshore infrastructure for the project is estimated to cost $821 million, according to a feasibility report the utilities released on March 24.
"We may solicit proposals from third parties who will build the farm themselves," said Kevin Law, president and chief executive officer of LIPA. If so, the authority would enter into power purchase agreements with the third parties, and that cost would come out of its operating budget.
"Or we could decide to have an ownership interest," Law said in an interview. "Bonds could be involved" if they take ownership interest, he added.
The estimated cost for the first two phases of the project, $821 million, does not include the cost of building an offshore wind site to connect with onshore facilities, according to the report. It only includes infrastructure needed on land to support the transmission of 350 megawatts of power in the initial phase of the project, which could be expanded to 700 megawatts in a second phase, the report said.
The offshore component would include turbines and undersea transmission lines, among other things, said LIPA spokesman Ed Dumas. He declined to estimate the cost of offshore construction.
"[We] will work closely with federal, state, and municipal leaders to move this process along in a responsible way," Con Edison chairman and CEO Kevin Burke said in a release. The two utilities will coordinate with various New York agencies during the second phase of the project's development, they said.
Energy generated by the facility would be split evenly between the nonprofit municipal utility and the private power company, the report said. A 350-megawatt facility operating at 30% capacity factor would generate enough energy for more than 250,000 homes per year, it said.
LIPA and Con Edison plan next to put together a more detailed evaluation of costs and construction plans and will issue a request for information so that equipment manufacturers, wind developers and other parties can provide necessary input.
The two utilities said they are seeking approval to connect the offshore wind project with the New York Independent System Operator to generate up to 1400 megawatts by 2020.
