The recent heat wave across New York underscored the importance of reliable electricity, which cannot be taken for granted. It was a timely reminder for all New Yorkers that a dependable generating fleet remains essential to keeping the lights on. Extreme temperatures drove electricity demand to near-record levels and placed significant stress on the oldest electric system in the United States.
Governor Hochul deserves credit for taking the pragmatic approach of pursuing an “all of the above” energy strategy.Notably, recent actions by the Governor’s office, such as the approval of the Northeast Supply Enhancement Project and updating the Climate Law, demonstrate that New York is taking responsible steps to balance its clean energy ambitions with the realities of maintaining a reliable and affordable electric grid. IPPNY’s members continue to support a clean energy transition and believe that an “all of the above” strategy must include both investment in new technologies, as well as preserving and investing in resources that maintain reliability.
Repowering the oldest power plants in New York, some of which are between 50-75 years old, presents a rare “win-win” opportunity by alleviating the burden of environmental and economic challenges on communities by replacing older equipment with state-of-the-art, cleaner, and more efficient systems. Further, air quality in vulnerable communities can significantly improve, a dependable energy supply can be maintained, and utility bills can be more affordable by reusing existing sites and avoiding prolonged maintenance costs. Importantly, the efforts would also increase economic activity and can benefit local communities and the State.
New York’s laudable clean energy transition largely focuses on renewables, electrification, and innovation, but additional common-sense actions continue to be available, such as repowering some of the State’s oldest generating facilities. These facilities continue to play a critical role in ensuring that air conditioners are running during the hottest days of the year, and help the State meet rising demand, when transmission is not available, or if other resources simply are not enough. The need for fast ramping, dispatchable, and nimble generating assets is essential, and those qualities will be even more necessary as offshore wind and other renewables continue to be integrated into the transmission system.
The reality is, New York has an opportunity to lower emissions even further and strengthen reliability by repowering older, dispatchable generation – an action that has awaited support by State decisionmakers over the past decade due to a lack of political courage, lengthy permitting processes, or public policy flip-flopping.
The benefits of repowering older units are not just IPPNY’s opinion, but something that is backed in the recent Power Trends report by the New York Independent System Operator (NYISO), the entity in charge of operating the electric grid reliably. According to the NYISO, repowering or replacing aging power generation could lower nitrogen oxide emissions by more than 85%, with concurrent reductions to carbon dioxide over time.
Improving the State’s complex, and often lengthy, permitting process can remove a major barrier to repowering aging plants. The fact of the matter is, New York is competing with other states and countries for investment, and the companies that are open to modernizing existing facilities look to investor-friendly states. Permitting repowering projects as consistent with the State’s climate law needs to be a priority so that New York retains these economic development opportunities and maintains the reliability of the grid. The State’s review process can be improved by establishing and keeping clear and predictable timelines, prioritizing upgrades at existing sites, and recognizing the environmental value of replacing older, higher-emitting units.
The path to a cleaner energy future requires balancing ambition with practicality, as well as innovation with common sense. Now is the time to modernize the assets we have.
Gavin J. Donohue is President and CEO of the Independent Power Producers of New York and serves on the New York State Climate Action Council. He previously held the position of Executive Deputy Commissioner at the New York State Department of Environmental Conservation.
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