Offshore wind farm a finalist on LIPA's green-energy list

The Long Island Power Authority has selected an offshore wind farm 30 miles from Montauk Point as one of the finalists in its plan for a fleet of new green-energy projects.

Deepwater Wind, the Providence company that made the proposal, was notified by LIPA a week ago that its 35-turbine array was chosen as a finalist. Deepwater chief executive Jeff Grybowski said the company has until Dec. 5 to make a "best-and-final" offer as LIPA narrows the list to present to its board of trustees at a Dec. 17 meeting. Numerous solar-energy proposals also were selected, according to people familiar with the process.

LIPA's selection of the Deepwater project comes despite earlier indications that the wind farm was not economical, in part because LIPA would be obligated to purchase all the project's energy, even when it wasn't needed. Deepwater estimates it will cost around $1.5 billion to construct the 210- megawatt array and lay a cable to connect to Long Island somewhere in Southampton.

Grybowski said the wind project pricing was competitive with other green-energy proposals, including solar. He said the wind farm fills a need for more energy in eastern Long Island. The wind farm is "focused on a very specific problem," he said.

Although LIPA is narrowing a list of green-energy finalists, it's unclear that they will be awarded contracts this year.

In a statement this week, LIPA said that while "no decisions have been made at this time" on the green-energy proposals, LIPA staff's "evaluation and recommendation" will be presented to the board at the December meeting. The statement doesn't say trustees would vote to award contracts. A spokesman declined to comment.

One trustee said LIPA should wait until PSEG Long Island completes a thorough review of all LIPA's energy sources before it commits to new projects, echoing advice in an interim report from PSEG during the summer.

"I don't think we should make a commitment to any form of proposal at this point," said trustee Matthew Cordaro. "They may make sense, but they all have to be examined together on a common basis. The PSEG integrated resource plan will do this. It's prudent utility practice."

Deepwater Wind, meanwhile, continues to gather political and labor support for the project, after a bipartisan list of state and local lawmakers expressed support at a rally before a LIPA trustees meeting last month.

At a briefing Tuesday, Suffolk County Executive Steve Bellone, who opposed a proposed LIPA wind farm off Jones Beach seven years ago when he was Babylon supervisor, threw his support behind the Deepwater proposal. "This is a brand new industry, and Long Island is positioned to be at the heart of this new industry," he told labor leaders.

Deepwater said the project, if approved by LIPA and regulators, would result in 300 construction and engineering jobs during each year the array was being built, starting in 2015.

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.