2025 Power Trends Report is a Wake-Up Call for New York – And a Green Light for Private Investment
New York’s approach to energy and climate policies is due for an honest assessment. The decisions the State makes will determine whether New York’s energy grid can withstand the demands of an electrified future.
The recently released 2025 Power Trends report from the New York Independent System Operator (NYISO), which manages our electric grid, should be a wake-up call for energy policymakers. The report delivers a sobering message: unless we act, reliability and affordability are at serious risk.
No matter how bold the vision, the State cannot sidestep the laws of economics or physics. Power Trends makes it clear that electricity demand is surging—but new sources of supply are not keeping pace in New York. That imbalance threatens to undermine our entire energy transition. Additionally, older power plants are shutting down faster than clean energy projects are being built. The result is a widening gap between the electricity New Yorkers need and the electricity the current system is prepared to deliver.
Progress demands honesty and pragmatism. Building a reliable, carbon-free grid takes time, investment, and planning. Right now, projects face permitting delays, policy uncertainty, and supply chain bottlenecks—all slowing the pace of development.
The State also needs to rethink its approach to reliability. Solar and wind are important—but they are not always available when demand peaks. New York needs firm, zero-emitting, dispatchable resources that can operate at any time—day or night, rain or shine. That is why a balanced, “all-of-the-above” energy strategy must be embraced.
Governor Kathy Hochul’s recent announcement of a new nuclear plant is an important step forward toward New York achieving its clean energy mandates while embracing zero-emission resource options. Reaching the State’s energy targets requires technologies that can provide reliable and dispatchable power, such as nuclear, and all resources that fit that need should be explored. Since Governor Hochul’s announcement, the State Energy Planning Board met for an honest discussion regarding the costs and reliability impacts of New York’s clean energy transition. These conversations are crucial in determining the resources that will power the State’s energy future. New Yorkers need ALL available power, and no source that can help meet the CLCPA’s targets should be off the table.
The NYISO’s recent energy warnings at the end of June, due to a decline in operating reserves during a string of extremely hot days, further prove the need for a balanced energy approach. While New York’s grid maintained reliability throughout the heat, mainly with gas and oil, this issue will continue to occur if the State does not take a responsible approach to reliability. An added drawback in extreme scenarios such as this recent one is that New York has to rely on importing energy from neighboring regions rather than reaping the benefits of in-state generation, associated jobs, and State and local revenues.
The good news is that the private sector is ready to develop and deliver for New Yorkers. Independent power producers stand ready to invest in the next generation of flexible, clean energy technologies. A competitive solicitation process to advance these resources and projects ensures transparency and innovation, which will deliver a more reliable and affordable electric grid that benefits all New Yorkers. However, to unlock that investment, we need clear rules and market certainty. Since 2021, IPPNY and Labor have urged the State to establish a competitive zero emissions source program, and now that need is ever more urgent.
The NYISO report also highlights an often-overlooked threat: the age of our infrastructure. A significant share of New York’s power currently comes from units that are more than 50 years old. These aging assets must be modernized—not just to reduce emissions, but to preserve grid stability. Current policies make those repowering investments nearly impossible, putting the State’s future reliability in jeopardy.
Power Trends is more than a technical roadmap—it’s a call to action. New York has the potential to lead the nation in clean energy, but leadership requires balance, realism, and the courage to make decisions based on good policy.
Let’s seize this moment! When, and not if, we get this right, New York can become a national model for how to decarbonize responsibly while keeping the lights on and costs in check.
Gavin J. Donohue is President and CEO of the Independent Power Producers of New York and a member of the New York State Climate Action Council. He previously served as Executive Deputy Commissioner of the New York State Department of Environmental Conservation.
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