The New York Power Authority approved a plan Tuesday to nearly double the state-owned utility’s goal for solar, wind, and energy storage projects to 5.5 gigawatts. The new investments would boost clean power in the state as the private market fails to deploy renewable energy fast enough to meet New York’s lofty decarbonization goals.
In a unanimous decision, the board of trustees voted to greenlight the utility’s new strategic plan for renewables. Though the 5.5 GW figure is an increase over the utility’s initial plan, released this January, it also represents a reduction from the 7 GW draft plan NYPA unveiled over the summer.
The utility blamed the slimmer target on private renewable-energy developers pulling out of 16 joint ventures. Activists, however, accused NYPA of dropping projects to boost plans for new fossil-fuel infrastructure recently approved by Gov. Kathy Hochul, a Democrat.
The 2019 Climate Leadership and Community Protection Act requires New York to generate 70% of its power from renewables by 2030 and the rest of its electricity from zero-carbon sources by 2040. It’s one of the most ambitious decarbonization goals in the country, but the state is lagging behind on meeting its legally mandated benchmarks in virtually every category of clean power except for distributed energy sources that include rooftop solar.
Today, natural-gas-fired power stations provide about half New York’s electricity. Aging hydroelectric stations, backed up by additional dams in Canada, provide nearly one-quarter of the state’s power, closely followed by nuclear reactors from plants upstate. Solar and wind each account for only a single-digit share of the state’s power mix, below the U.S.-wide share and far below that of California, Texas, and other states.
NYPA, the second-largest state-owned utility after the federal Tennessee Valley Authority, is increasingly being called on to help close that gap.
Two years ago, Hochul approved measures to give NYPA a mandate to invest directly in clean energy projects — an authority modeled closely on a piece of legislation called the Build Public Renewables Act.
This January, NYPA unveiled a plan to build out more than 3 GW of wind, solar, and batteries using its expanded remit. In July, it released a draft plan that more than doubled that target to 7 GW
But NYPA elected to own just 51% of these projects. So when developers backed out of the 16 joint ventures, due largely to the rollback of federal tax credits for wind and solar projects and a lack of available transmission capacity, NYPA said it was forced to move forward with fewer projects.
In a statement cautioning that the strategic plan “is an iterative document that will be continually re-assessed and updated,” NYPA’s chief executive Justin Driscoll called the latest proposal “a strong portfolio of refined project opportunities that builds on the energy capacity outlined in the inaugural plan.”
“Despite strong headwinds threatening the viability of renewables projects throughout the nation, NYPA continues to leverage its expertise and reputational strength to develop projects that will bolster the energy diversity of New York’s electric grid,” Driscoll said. “This updated plan is only a snapshot of our ongoing efforts, and NYPA will continue to assess the state’s addressable renewables market to identify new projects that can be added into future plans.”
While the state’s climate law sets deadlines for New York to up the share of renewables in its power mix, NYPA is not beholden to completing the full 5.5 GW by a specific date. The plan, though scheduled for an update only every two years, could be revised as early as next year as new projects become viable or existing ones go under.
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