New York’s Energy Planning Balances Progress with Affordability During Uncertain Times
New York, under Governor Kathy Hochul, has proudly become a national leader when it comes to renewable energy and creating green energy jobs. But political and economic headwinds are impacting the rate of progress, not just here in New York but in many other states. To keep New York on track, the State Energy Planning Board has developed a draft plan that provides pragmatic guidance that recognizes the reality of the times we are living in.
The Draft Plan’s ‘bottom up’ approach offers different energy system pathways that account for the disruptions of the global pandemic and lingering supply chain, inflation, and geopolitical challenges, as well as the recent impacts of dramatic federal policy changes.
Although the Draft Plan outlines recommendations to build on progress, public input is critical. That’s why the State Energy Planning Board is actively soliciting feedback on the Draft Plan via online or U.S. mail through October 6. To date, the Board has seen a robust public response with over 3,000 comments submitted across oral and written comments on the Draft Plan – representing a diverse range of New Yorkers, including energy experts, industry trade groups, advocates, business owners, students, and residents from across the State. Building on the prior public comment period that informed the final scope for the State Energy Plan and a series of public Board meetings over the past year, this additional public input will be considered as the State Energy Plan is finalized this year.
In developing the Draft Plan, the State Energy Planning Board conducted a number of studies to assess our current energy systems alongside projected energy demands over the next 15 years. Among the findings is the stark reality that our energy infrastructure is aging. The New York Independent System Operator reported in its 2025 Power Trends Report that a growing number of fossil-fuel generators in New York are reaching an age at which similar units across the country have been deactivated with approximately a quarter of New York’s fossil fuel-fired generator capacity in operation for more than 50 years.
So, what does this mean? It means that, just like with anything else that is aging, we need to upgrade, renovate or replace our energy grid infrastructure to ensure the energy sources we rely on today, like home heating and lighting, remain reliable, available and affordable through the next decade and beyond. This baseline system-wide spending, including the cost of fuels like gasoline and home heating oil, is approximately $120 billion per year through 2040 and is required to maintain existing energy systems and services. We now have an opportunity to reallocate this anticipated spending to energy efficiency and clean renewable energy, technologies and solutions. In fact, analysis conducted to inform the Draft Plan finds that overall costs are just 2 percent more in 2030 and 9 percent more in 2040 when we reallocate this funding as compared to not taking action at all.
Our commitment to building out clean energy is already paying off – and we are seeing real and measurable benefits.
Under Governor Hochul, New York has become home to the country’s largest operational utility-scale offshore wind farm which is generating enough renewable energy to power 70,000 homes – with two more offshore wind farms under construction. The state also installed six gigawatts of distributed solar energy a year early. Because of this, we saw clean energy play a pivotal role during a June heat wave. Power generated from solar helped ensure the grid remained reliable by reducing the state’s peak load by five percent, which also decreased statewide costs by over $90 million. And it may surprise some to learn that data shows New York consumes less total energy per person than all but one other state in the nation – Rhode Island – in large part due to our investments in energy efficiency. And next year, the Champlain Hudson Power Express will deliver hydroelectric power from Canada to New York City. The transmission line will deliver 20 percent of New York City’s power, all of it clean. This is all cause for optimism as well as confirmation that our energy investments are providing tangible results.
Additional analysis shows that continued implementation of the State’s energy policies would provide substantial public health benefits throughout the State in all communities, with the greatest benefits realized in disadvantaged community areas. This includes reduced emissions and cleaner air resulting in avoided hospitalizations, work loss days and emergency room visits due to asthma.
I urge New Yorkers to dive into the Draft Plan to understand how we are planning to ensure we meet our energy objectives in the coming years. All perspectives are welcome as the Board develops a final plan and determines how to best guide New York State forward to a healthier, zero-emission energy future.
Doreen M. Harris serves as President and CEO of the New York State Energy Research and Development Authority and Chair of the New York State Energy Planning Board.
