New York State approves contracts to bring renewable energy to NYC
The New York State Public Service Commission has approved two contracts to bring wind, solar, and hydroelectric power from upstate New York and Canada to New York City.
One contract was awarded to Clean Path New York for its Clean Path NY project, and the other was awarded to H.Q. Energy Services Inc. for its Champlain Hudson Power Express project.
“New York continues to lead the nation with innovative green energy initiatives and has been an example to the rest of the world how to confront the perils of climate change, the existential threat of our time,” New York Gov. Kathy Hochul said. “Today’s decision is a major step forward in achieving New York State’s goal of 70 percentage of our energy from renewable resources while paving the way for thousands of high-quality jobs, spurring billions in economic activity, reducing our dependence on fossil fuels, and ushering in a cleaner, greener New York for all.”
This project is expected to reduce greenhouse gas emissions by more than 50 percent by 2030 and improve air quality. It will also deliver $8.2 billion in economic development across the state, including investments in disadvantaged communities. Further, it will help protect against volatile fossil fuel price fluctuations and help stabilize long-term energy costs.
The City of New York agreed to purchase a portion of the renewable attributes generated by the two projects, thus helping to make the scale of these projects possible. It also creates the opportunity to reduce the cost impact of these projects by up to $1.7 billion to all other ratepayers.
Additionally, the NYS Office of General Services committed to entering into a contract with the New York State Energy Research and Development Authority (NYSERDA) for Tier 4 RECs associated with the energy used by State agencies and departments in the City. NYSERDA payments will commence for each project once the project has obtained all required permits and approvals, completed construction, and delivered power to New York City. The Champlain Hudson project is expected to be operational in 2025, while the Clean Path project will be up and running in 2027.
“This is a historic milestone in our mobilization against climate change and fight for environmental justice,” New York City Mayor Eric Adams said. “Today, we begin dismantling the disparate access to renewable energy that has plagued our city for far too long, especially those communities that reside in the shadow of some of the oldest, most polluting power plants in the state. Not one but two new transmission lines will be built to bring clean, renewable energy from the north into New York City — a feat that has not occurred at this scale in decades. I’m proud of the city’s commitment to purchase 100 percent of its electrical need from these lines, catalyzing others to do the same.”
