The Long Island Power Authority (LIPA) has announced the companies selected to develop one of the largest solar power projects in U.S. history – a 50 megawatt photovoltaic solar power installation constructed and operated on municipal, school and private properties across Long Island.
Of the 28 companies that provided bids, every firm selected by LIPA to participate in this important U.S. initiative is foreign-owned. LIPA expects to begin negotiations with the developers on the 20-year contract terms, with deliveries to begin by June 1, 2009.
The project's solar energy will be produced by the chosen developers and will be introduced onto the LIPA grid and purchased by LIPA.
American Capital Energy President Tom Hunton said "While we support the goal of creating this major solar power project, we are, however, dismayed by the fact that no U.S. companies were selected. We believe that LIPA owes the people of New York, and the residents of Long Island an explanation about how this contract was awarded. Particularly in light of LIPA's stated goal of encouraging economic development within New York State; especially on Long Island, it seems that awarding this contract to four foreign companies completely contradicts that objective."
According to reports, LIPA has maintained that it was legally obligated to award the contract to the lowest bidders and claims that their hands were tied in this regard.
However, the RFP indicates that the Authority's Selection Committee would evaluate proposals using more than 10 selection criteria.
"We are also concerned that LIPA's decision to award one of this country's largest solar initiatives to date to non-American companies could jeopardize Long Island's position for getting stimulus funding from the federal government for this project," Hunton added.
LIPA's solar project is one of the first of its kind in the U.S. and takes an important step towards answering President Obama's call for energy independence and the move towards clean energy sources.
The President and Congress have also committed to a huge investment of American tax dollars via the stimulus package to help create a new green economy.
As America begins to shift its focus away from fossil fuels to renewable energy, this latest development demonstrates that it is all the more urgent for U.S. firms to have a stake in that future.
Hunton went on to say, "This is definitely not what President Obama had in mind when he championed the stimulus legislation and spoke of the creation of a new green collar workforce in the United States." He added, "Will U.S. investment in a clean energy economy only benefit foreign owned companies, or will U.S. companies be a part of this future, too?"
