Under pressure to achieve its 100% clean energy goals by 2040, the NYPA, operating under enhanced authority granted in 2023, is advancing its first 40 self-developed clean energy projects.
New York, the financial capital of the world, is putting its money where its mouth is; tasking its powerhouse public energy authority with deploying clean energy projects that balance profit with public good.
The New York Power Authority (NYPA) has been tasked with supporting the buildout of the clean energy resources needed to reach the state’s 100% clean energy goals. With contractor approvals completed in the spring, the group has been seeking comment on its first set of projects, with final comments due by early December.
The Renewables Strategic Plan: Public Comment Draft, released on October 4, outlines the first 40 projects NYPA is pursuing: 32 solar power projects, one wind project, and seven battery storage systems. Combined, these installations will have a capacity exceeding 3.5 GW.
Source: NYPA
NYPA’s expanded responsibilities include workforce development, community outreach and decarbonization of small gas power plants. Additionally, the agency oversees existing generation assets, transmission infrastructure, canal management, and environmental justice efforts.
A roadmap for renewables
The newly formed NYPA Renewables program emphasizes early progress in areas like staffing, contractor engagement, due diligence processes, best practice research, and project development. The group also conducted a strengths, weaknesses, opportunities, and threats (SWOT) analysis to identify how it can compete in New York’s well-established clean energy market. Key advantages cited include:
- Access to diverse capital sources.
- High credit ratings and a strong balance sheet.
- Land siting and permitting expertise.
- The Direct Pay program.
- A reputation for reliability among diverse customer bases.
- Strong ties to the New York Independent System Operator (NYISO), potentially easing interconnection challenges.
Per its charter, the NYPA is required to own a majority percentage of projects it develops. However, the agency is exploring flexible development and ownership models, including Build-Transfer Agreements, where it fully acquires constructed projects at agreed-upon milestones, and direct project involvement, offering strategic support during development phases.
To monetize its clean energy assets, NYPA plans to sell Tier 1 Renewable Energy Certificates (RECs) and sign Power Purchase Agreements (PPAs) for projects over 5 MWac. For smaller projects, the agency sees the Variable Distributed Energy Resources (VDER) program as a logical market. In general, the NYPA sees merchant market returns alone are insufficient to meet financial goals.
The 40 clean energy projects in NYPA’s inaugural portfolio are undergoing a detailed review process in collaboration with 79 prequalified developers and investors, selected earlier this year through a Request for Information (RFI) process focused on renewable energy technologies like solar, wind, battery storage, and green hydrogen. Final project decisions are expected in January, following comprehensive evaluations of technical data, project economics, community impact, and real estate factors. NYPA stated it will “provide estimated project cost information to the extent available” as contracts are executed and in biennial updates to the Strategic Plan.
While NYPA advances these renewable projects, New York State is also casting a wide net in its energy strategy. A separate RFI issued by NYSERDA seeks to gauge interest in advanced nuclear technologies, reflecting the state’s commitment to exploring all pathways to a zero-emission electricity grid by 2040.
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