New York Governor Paterson Announces Major Expansion Of New York's Solar Energy

$10 Million in Stimulus Funding Now Available through NYSERDA for Solar Projects; NYPA Also Expected to Make Formal Request for Proposals this Year for 100-Megawatt Solar Power Initiative

October 07, 2009 -- New York Governor David A. Paterson today announced that $10 million in American Recovery and Reinvestment Act (ARRA) funding is now available through a competitive statewide solicitation for solar energy projects in New York State.

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The funding is available through NYSERDA's State Energy Program (SEP) to fund the installation of solar photovoltaic (PV) systems. Additionally, Governor Paterson announced that the New York Power Authority (NYPA) is expected to make a formal request for proposals later this year for a 100-megawatt solar initiative, which would increase the State's current installed solar capacity five-fold.

"The statewide interest in developing our solar energy production is proof that New York is fertile ground for the clean energy economy. Not only will these projects put New Yorkers back to work, but they will help cut down energy costs and reduce greenhouse gas emissions," said Governor Paterson.

The two programs will contribute to Governor Paterson's goal of meeting 45 percent of the State's electricity needs through improved energy efficiency and renewable energy by 2015. It is estimated that the expanded use of clean energy technologies will create some 50,000 new jobs in New York. Additionally, the push to increase New York.s renewable energy production is a critical step to help the State achieve the Governor's goal of reducing current greenhouse gas emissions from all sources within the State by 80 percent below levels emitted in 1990 by the year 2050.

The $10 million in ARRA funding is designed to help build a sustainable solar industry in New York State by promoting the installation of high quality solar power systems and deploying clean energy technology. The program will provide incentives for PV systems that are connected to New York's energy grid.

"Recovery Act funding for PV installations will aide in expanding the State.s clean energy workforce and increase the proportion of renewable energy used by New York consumers, which complement the goals of Governor Paterson's "45 by 15" and "80 by 50" energy initiatives," said NYSERDA President and CEO Frank J. Murray, Jr. "With the assistance of these funds, New York State's solar industry will have an even stronger presence, helping consumers reduce energy costs and their carbon footprints."

Separately, following the receipt of some 40 responses to a formal request for expressions of interest (RFEI), NYPA plans to issue a Request for Proposals (RFP) sometime this winter for the 100 MW of solar power development. In addition to solar power developers, parties responding to the RFEI included renewable power trade groups and various NYPA customers interested in installing PV systems at their facilities. The systems would be owned and operated by the developers and NYPA would purchase the electricity on behalf of customers under a solar power purchase agreement.

The possible sites include public and private schools, municipal government buildings, State agencies, and community-owned municipal electric systems and rural cooperatives. In some instances, the solar power could also provide support for the local electric distribution grid.

"We're currently evaluating the responses in anticipation of preparing a formal Request for Proposals with the appropriate evaluation criteria and other information for encouraging the submission of high-quality bids for this large solar project," said Richard M. Kessel, NYPA President and Chief Executive Officer. "We.re delighted by the strong interest that we received and are looking forward to being the catalyst for this landmark project, which directly stems from the Governor's innovative energy policies."

Electric customers that do not pay into the Renewable Portfolio Standard will be eligible for the ARRA funds. Funding will be provided to companies selected in the solicitation as a fixed amount in dollars per installed kW. Selected companies will demonstrate the capability and strategy to install between 500kW and 1,000 kW of PV over a defined period of time. Proposals to the Competitive Capacity-Based Incentive Program are due by 5:00 pm EST on Thursday, October 29, 2009. In developing the SEP plan, NYSERDA took into account the priorities to meet New York's clean energy goals; opportunity to use ARRA funds to augment rate-payer (SBC/RPS) funded programs; and methods to use SEP funds to leverage other resources and provide as a steady funding source for renewable energy and energy efficiency projects.

Senator Charles Schumer said: "This funding is an opportunity to create jobs, save families money, and help the environment, all at the same time. Investing in solar and renewable energy projects will help New York State improve its energy efficiency and reduce our dependence on foreign oil."

Senator Kirsten Gillibrand said: "This is a great investment for New York. These federal dollars will help us produce more clean, homegrown sources of energy by installing more solar panels . cutting our emissions and improving our environment, while creating new jobs and helping to rebuild our economy. I will continue working with Governor Paterson, Senator Schumer and the entire Congressional Delegation to make sure New York gets its fair share from the federal government."

For more information about NYSERDA.s Capacity-Based Incentive Program (PON 1686), visit http://www.nyserda.org/funding/1686pon.asp . For more information on other NYSERDA administered ARRA funding opportunities, visit http://www.nyserda.org/economicrecovery/arrafunding.asp.

For more information on the plans for the 100 MW of solar power development, the RFEI can be accessed on the NYPA Web site at www.nypa.gov/100mwSolarRFEI.htm.

Source: New York Governor