All-of-the-Above Energy Strategy Is the Right Path for New York
It is laudable that New York seeks to lead the nation in clean energy development. The State’s climate goals – among the most ambitious in the country – reflect a strong commitment to reducing emissions and building a sustainable future. But with the summer’s heatwaves and the New York Independent System Operator’s (NYISO) recent energy report’s warnings, New York must take a responsible and balanced approach to achieving a cleaner grid – one that recognizes the indispensable role of all available energy resources.
During the hottest weeks of the summer, more than 60% of the State’s electricity came from emitting sources such as natural gas and dual-fuel generation. Those plants ensured that air conditioners, hospitals, and medical devices stayed running when demand spiked. The NYISO has repeatedly warned that the State’s reserve margins are tightening – especially as electrification of vehicles and heating accelerates. Further, the grid operator projects that New York City and Long Island could face reliability shortfalls as early as 2026 if dispatchable power is not replaced at the pace fossil units retire.
The good news is that Governor Kathy Hochul and decisionmakers are showing signs of embracing an “all-of-the-above” energy strategy – a pragmatic shift that deserves recognition. Additionally, the Draft State Energy Plan, released this summer, reflects a more realistic tone than prior iterations. It emphasizes the importance of existing generation, timely new electricity supply, innovation, and affordability. Importantly, the Draft Plan acknowledges the NYISO’s reports that fossil-fueled units cannot be retired until non-emitting replacements with comparable reliability attributes are available. This reality was further recognized by the recent approval of the Northeast Supply Enhancement pipeline project, which will transport needed natural gas to downstate New York. This significant decision by the New York State Department of Environmental Conservation demonstrates that the resource will be crucial to maintaining electric reliability and safety throughout the State’s energy transition.
These positive signs signal that the Governor understands what grid operators, labor and business groups, and consumer advocates have been saying: no single technology, or narrow subset, can meet the State’s climate mandates alone. The transition must be measured, data-driven, and inclusive of emerging solutions such as renewable natural gas, hydrogen, carbon capture, new nuclear, and flexible thermal generation that can bridge the reliability gap. While the advancement of resources such as wind, solar, and battery storage are all important, these resources hardly contribute to New York City’s reliability deficiency in 2026 – a deficiency that is only expected to grow.
Implementing an “all-of-the-above” approach is proving to be politically challenging. The State has taken a restrictive view of what counts as “clean,” such as forgoing repowering proposals, creating uncertainty for developers and deterring private investment. Delays in permitting, unclear guidance on repowering projects, and the need for transmission expansion all pose serious risks to grid reliability and cost containment.
At the same time, New York’s electricity demand is expected to increase by more than 15% by 2035, driven largely by building and transportation electrification. Without a parallel commitment to dispatchable and firm resources, ratepayers could face higher costs and a less reliable grid – an outcome that would undermine public confidence in the energy transition itself.
The private sector – particularly members of IPPNY – stands ready to invest billions in new and repowered infrastructure to help meet the State’s goals. But to do so, the State must provide clear, predictable policy direction on fuel supply development, permitting, and technology eligibility. Policy uncertainty risks driving investment to neighboring states, taking with it jobs, tax revenue, and grid stability.
Governor Hochul has an opportunity to solidify her legacy as the leader who made New York’s clean energy transition both achievable and affordable. By insisting that “all-of-the-above” truly means ALL viable options – existing and new generation, advanced clean fuels, storage, renewables, and next-generation technologies – New York can remain both a climate leader and a reliability model for the nation.
The Bottom Line:
New York’s path forward must be practical, not political. Meeting the State’s climate targets requires innovation, inclusion, and above all, realism. The State must keep every responsible option on the table to meet growing demand and protect the well-being of all New Yorkers, while maintaining affordability. Clean energy leadership means more than ambition—it means having the courage to balance ideals with the hard realities of keeping the power on.
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.
*sponsored content*
