New York's Renewable Programs Can Attract More Investment
IPPNY Calls for Positive Changes
Albany, N.Y., 12/16/13 - The Independent Power Producers of New York, Inc. (IPPNY) recommends facilitating the construction of large-scale solar energy projects and energy storage through the New York State Renewable Portfolio Standard (RPS) program, as part of expanding New York's diverse energy mix. IPPNY also supports funding from the New York Green Bank for renewable energy resources, energy storage, and the reduction of greenhouse gas emissions from the power sector. These cutting edge investments will bring needed jobs and tax revenues to New York State.
IPPNY's President & CEO Gavin J. Donohue said that the successful RPS program can do even more. "New York state can shine light onto the need to provide seed monies for more investment in larger solar energy projects and energy storage," Donohue stated. "These technologies will help diversify the state's energy landscape and grow the state's economy."
New York's broad energy fleet includes over 6,000 megawatts of renewable resource capacity.With 22 percent of the state's electricity supplied by renewables in 2013, the state is making progress toward having 30 percent of the electricity consumed by New Yorkers come from renewable energy resources by 2015. The RPS Main Tier is the most cost-effective manner to obtain renewable energy resources, and IPPNY recommends that the RPS target date should be extended beyond 2015 to allow for the addition of more cost-effective Main Tier resources.
The NY-Sun program also should foster larger-scale solar projects. Investments in bigger solar projects have greater economies of scale, in terms of development cost and efficiency associated with the permitting, construction, and interconnection processes. In addition, New York needs more specific and sustainable investment opportunities for energy storage, beyond demonstration projects and studies.
Renewable energy resources already are being integrated successfully into the electricity grid, and the strategic location of energy storage projects could help offset the intermittent nature of renewable energy. The New York State Public Service Commission (PSC) should evaluate whether to provide incentives for proposals to develop renewable energy resources in combination with energy storage projects. Energy storage also could help improve grid resiliency and meet the state's electricity demand.
In its comments to the PSC, IPPNY also advocates for: firm and transparent deadlines for the issuance of RPS procurement solicitations; ensuring that utilities do not own or operate new generation or energy storage of any type, given that independent power producers more appropriately bear investment risk in the wholesale electricity market without burdening captive utility ratepayers; having both existing and new renewable energy resource projects in New York State be able to access RPS funding to maintain progress toward the RPS goal; the development of a long-term market for renewables; and clarification of the roles of the RPS and the Green Bank programs.
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The Independent Power Producers of New York, Inc. (IPPNY) is an Albany-based trade association representing the competitive power supply industry in New York State. IPPNY Members generate over 75 percent of New York's electricity using a wide variety of generating technologies and fuels including hydro, nuclear, wind, coal, oil, natural gas and biomass.
