Reliable power critical to powering upstate’s economic comeback
Upstate New York’s economic comeback continues, and we need to look no further than Schenectady as a prime example.
What was once a struggling upstate New York city transitioning from an aging industrial hub to a new, vibrant destination point is now home to a premier entertainment and residential complex anchored by a casino, hotels, apartments and, soon, a state of art event center.
Coupled with the transformation of nearby downtown, the revitalization of the Electric City would not be possible without the very thing that gives Schenectady its nickname: reliable energy.
As a developer, the ability to access sufficient, secure energy is foundational. From exploring nuclear power to being open-minded about maintaining sufficient access to natural gas, Gov. Hochul must be commended for zeroing in on pragmatic ways to ensure that the pro-business, pro-upstate growth climate her administration is driving will not be threatened by a lack of plentiful and affordable power. That’s how we continue to revitalize communities across the state to attract scores of young people and create access to new services, housing, and entertainment for lifetime residents.
To be sure, under a true all-of-the-above approach, alleviating gas constraints across the state is just as important as building new electric generation. We need to give the same fair hearing to the re-emergence of pipeline proposals for future upstate growth, as well as projects like the Constitution and Northeast Energy Supply Enhancement projects in downstate. After all, natural gas is not only used for heating, but is also a primary source of electric generation. With billions upon billions of dollars being invested in upstate’s electric transmission grid in the next several years, this all-of-the-above approach needs to encompass multiple energy sources.
That’s how we enable the Capital Region to continue its growth streak over the coming years. That includes supporting economy-defining high-tech development like the expansion of Global Foundries in Saratoga County, the $10 million of New York State investment in the Albany Nanotech campus, and others dotting the emerging high-tech corridor that would stretch to Buffalo. GE Verona, too, is continuing to invest in its Schenectady and Niskayuna campuses, ensuring that the region continues to benefit from its history of innovation.
This kind of growth, coupled with a march toward greater building and transportation electrification, is projected to double electricity demand over the next two decades. But the state isn’t adding enough new power generation to accommodate this growth, according to NYISO, the state’s power grid operator.
Without reliable, plentiful energy, project sites would remain undeveloped, depriving people of the much-needed economic and community benefits. As developers, availability of sufficient energy is among the first thing potential tenants ask about and what ultimately drives their decision to invest here – or go elsewhere. The same dynamics apply at the state level, which is why we need to continue to pursue an all-of-the-above energy policy to fuel our comeback.
The revenue generated from economic drivers like Mohawk Harbor in Schenectady and other large commercial and real estate investments flows back into government coffers, allowing localities to reduce property tax rates, stabilize their budgets, and continue to draw people to their communities.
These investments, and the influx of people they induce, create a snowball effect that we can collectively leverage to attract even more potential investors and continue to strengthen and diversify our economy.
It’s a formula that works, which is why communities across the Capital Region are bucking the statewide trend and are gaining population, from Saratoga County down to the Hudson Valley.
Now is not the time to mess with a recipe that delivers proven results — and depriving our state of all available energy options would do exactly that.
David Buicko is the president and Chief Executive Officer of the Galesi Group
