To: Clients and Colleagues
From: John Dalton, President & Margaret Blagbrough, Consultant, Power Advisory LLC
On January 2, New York Governor Andrew Cuomo unveiled sweeping clean energy proposals touching every aspect of the renewable energy sector. The main purpose of these proposals is to allow the state to fight climate change and protect the environment, while also creating jobs in the renewable energy sector. The set of proposals, titled the 2018 Clean Energy Jobs and Climate Agenda, is in addition to ambitious clean energy goals already mandated in the state, including the mandate to generate 50 percent of the state’s electricity from renewable energy sources by 2030.
A major piece of this agenda focuses on energy storage. Governor Cuomo plans to add 1,500 megawatts of energy storage by 2020, the largest commitment of this type per capita by any state. In order to achieve this goal, the Governor is proposing a commitment of $200 million from the NY Green Bank for energy storage investments. Additionally, he is directing the New York State Energy and Research Development Authority (NYSERDA) to invest $60 million through storage pilots to reduce barriers for deploying energy storage. This will pave the way for utility procurements of energy storage in 2018. Additionally, energy storage will be incorporated into the criteria for future large scale renewable procurements.
The Governor is also calling for a procurement of at least 800 megawatts of offshore wind generation between two solicitations issued in 2018 and 2019. These will be the first procurements in a set of staggered procurements to reach the state target of 2.4 gigawatts of offshore wind by 2030, established last year. Governor Cuomo is directing NYSERDA to invest in job training in the offshore wind industry and to determine the most promising offshore wind port infrastructure investments. In October of 2017, New York State submitted an identified Area of Consideration for new wind lease areas to the Bureau of Ocean Energy Management (BOEM). New York requested that BOEM identify and lease at least four new wind energy areas, each accommodating at least 800 megawatts of offshore wind, within the Area of Consideration.
The Governor also addressed energy efficiency, calling on stakeholders to propose a far-reaching energy efficiency initiative by April 22, 2018, propose a 2025 energy efficiency target, and establish appliance efficiency standards. Other agenda items include: the development of a zero-cost solar program for 10,000 low-income residents; expanding the Regional Greenhouse Gas Initiative (RGGI) to other states and to broaden regulations to include smaller and less efficient peaking plants; and phase out all coal-fired power plants in New York by 2020.
Power Advisory would welcome the opportunity to assist clients in assessing opportunities in the New York renewable energy market.
A PDF version of this report is available here.