Powering Through: New York State Power Generation Advisory Panel
After reviewing the Energy Efficiency and Housing Advisory Panel and the Transportation Advisory Panel in previous blog articles, it seems appropriate to explore the Power Generation Advisory Panel and its recommendations to help New York State meet the New York Climate Leadership and Community Protection Act (CLCPA) carbon emissions goals.
In addition to the emissions reduction goals, the CLCPA includes a target of 100% zero-carbon electricity by 2040, with in-between goals of:
- 6,000 MW of distributed solar by 2025
- 70% renewable electricity by 2030
- 3,000 MW of energy storage by 2030
- 9,000 MW of offshore wind by 2035
The Power Generation Advisory Panel recommendations for developing renewable power generation and energy storage are vitally important, as they address a significant portion of the CLCPA goals. New York State already generates some renewable energy and has contracts for future generation projects in place and ready to be constructed, but there is a considerable amount that still needs to be contracted and constructed by 2030.
Accelerated Renewable Energy Growth and Community Benefit Act
In April 2020, New York State passed the Accelerated Renewable Energy Growth and Community Benefit Act, in order to expand and streamline renewable energy deployment, as well as help the state recover economically from the COVID-19 pandemic. The act created a Clean Energy Resources Development and Incentives Program for NYSERDA to advance new “Build-Ready” projects, a Host Community Benefit Program, a State Power Grid and Study Program to develop grid and transmission infrastructure, and an Office of Renewable Energy Siting (ORES) to improve and speed up the siting and construction of clean energy projects. All renewable energy projects over 25 MW are now required to go through ORES for new construction or expansion, and ORES consults with other New York State departments to minimize adverse environmental impact. As a separate, consolidated process specifically for large-scale renewable energy construction, the hope is that new private investment will accelerate and generate more jobs for New Yorkers.
Electrification and Decarbonization
As discussed in previous blogs, reducing carbon emissions requires decarbonizing the electricity system, which in turn requires increasing energy efficiency, switching to low carbon fuels, and transforming the electricity supply to a zero-carbon system. Power generation growth and development is heavily influenced by decarbonization initiatives in other sectors, so the Power Generation Advisory Panel also considered insights from the roadmaps for clean transportation and carbon neutral buildings, such as what level of Electric Vehicles are needed to meet the CLCPA goals and how their charging patterns will affect the electricity demand. Moving away from fossil fuels by electrifying transportation and buildings will increase the annual electric load significantly. Therefore, New York needs to increase and diversify the renewable resources in the electricity supply in order to truly decarbonize. Because of the occasional intermittency of renewable energy sources, battery storage and demand-side flexibility are necessary to reduce peak demand and the need for new generation capacity. Transmission investments and upgrades will also be needed to be able to deliver 100% zero-emission electricity. Additionally, New York has access to adjoining regions’ energy supplies, which provides greater flexibility in times of great demand.
New York State Electric System
The New York Independent System Operator (NYISO) operates the competitive electric wholesale markets and administers the market for large facilities (greater than 5 MW) and the bulk power transmission system (230 kV and above). Local transmission and distribution are administered by regulated utilities overseen by the Public Service Commission (PSC).
In 2016, the buildings sector, industry, and transportation spent the most on energy services in New York State, with electricity and petroleum being the fuels with the largest share of total expenditures. As electrification continues, the goal is to reliably and cost-effectively integrate additional renewable sources of energy to the electricity system. In pursuit of the CLCPA targets, approximately 4700 MW of distributed solar and 1200 MW of energy storage are in utility queues.
Power Grid Study
The New York Power Grid Study identified possibilities for distribution and local transmission upgrades and bulk transmission investments to improve the power grid and provide recommendations to the PSC to plan for developments that are necessary to meet CLCPA goals. These recommendations also had to keep in mind the secondary goals of reliability, adequacy, and affordability for electricity consumers. The study was broken into three components:
- 100x40 Study — Evaluate the transmission, generation, and storage scenarios to be able to provide 100% carbon free electricity by 2040
- Offshore Wind Study — Recommend long-term transmission and storage strategies to best support the development of 9 GW of offshore wind by 2035
- Utility Distribution and Local Transmission Study — Propose distribution and local transmission upgrades to help meet the CLCPA targets
Overall, the results indicate that the transmission expansion programs already in progress put New York State on track to meet its 2030 milestones, although additional efforts will be needed to accelerate certain upgrades and implement storage deployment. Beyond the projects that are already planned, future bulk transmission needs through 2040 are dependent on the state’s progress with renewable generation projects. Offshore wind generation requires additional transmission capacity, and the study recommended a meshed offshore power grid to connect the offshore wind plants with each other and possibly with New Jersey and New England plants. Additionally, there are portions of New York State that could potentially contribute to renewable energy generation, but do not currently have access to the existing transmission infrastructure. If these areas are developed to provide renewable energy, additional transmission capacity will also have to be constructed.
Natural Gas System and Methane Leakage
With coal and oil-fired generation facilities being phased out of New York State’s energy mix, natural gas becomes the primary source of emissions from power generation. The natural gas system is currently responsible for 14% of methane leakage in New York State. Methane gas leaking from natural gas systems is a major concern when it comes to climate change: methane has over 80 times the warming power of carbon dioxide for the first 20 years after it reaches the atmosphere.
The recent closure of the Indian Point nuclear power plant places additional importance on natural gas plants to make up the lost generation. As customers continue to electrify their energy demand, they will likely move away from natural gas, making some natural gas infrastructure obsolete. However, if this electrification outpaces renewable energy development, natural gas plants will be required to meet power demands. From an emissions perspective, decreasing demand for natural gas does not necessarily result in decreasing emissions, since the system pressures have to increase to be able to move less gas through the system. Therefore, methane gas leakage within the natural gas infrastructure needs to be addressed now in order to reduce emissions.
Recommendations and Initiatives
Technology Solutions
Existing and future technologies will play a big role in meeting the CLCPA goals. Therefore, the Power Generation Advisory Panel understandably recommends increasing research, development, and deployment of current renewable energy generation, transmission, and storage technologies. In addition to increasing support for NYSERDA’s existing programs and new technologies, a study should be undertaken to explore New York State’s untapped renewable energy and storage potential. Implementing the right policies will attract new clean energy technology businesses and industry to New York State. There are multiple entities at play in these spaces, and NYSERDA will act as the centralized coordinator for research and development to insure greater efficiency. By aggressively moving forward with deployment of emissions-free energy technologies, energy generation facilities that rely on fossil fuels will be shut down more quickly, which will improve the air quality in the community.
Market Solutions
In order to support deployment and development of clean energy technologies, markets need to be flexible, incentivize desired resources and optimal grid management, and allow for technology innovation. With that in mind, market designs need to be structured to send the correct price signal at the appropriate time. Opportunities to improve accuracy and granularity of wholesale market energy price signals will need to continuously be assessed, also keeping in mind shortage pricing, congestion relief, and peak/off-peak pricing. Effective and flexible markets help keep costs low for consumers, which is part of the overall goals for the Power Generation Advisory Panel. Wholesale market eligibility participation rules for new policy resources need to be expanded, as does access for distributed resources. Public information needs to be made readily available so that developers can make informed project development decisions. Finally, current workers will be impacted as the energy system transitions away from fossil fuel plants will impact workers, so those workers will need to be helped to find new opportunities.
Existing Storage Technology
More energy storage is needed to help meet the CLCPA goals. The recent Power Grid Study identified a need for more than 15 GW. Therefore, increased funding is necessary for energy storage deployment. Updates also need to be made to the New York State Energy Storage Roadmap. Further modeling needs to be done to anticipate future grid needs, identify longer term storage resources that might develop through technology innovation, and break down the fully dispatchable generation and potential storage needs. Because of the interconnectedness of the energy system, energy storage planning needs to also be incorporated into energy delivery and transmission planning. Companies need to be incentivized to test their energy storage systems for the higher safety standards required in urban environments, such as New York City. Additional testing also needs to be done to ensure that new energy storage assets work with the exiting electricity grid. When it comes to the community, increasing energy storage deployment reduces the reliance on natural gas energy plants, thereby also reducing the negative health impacts on disadvantaged communities. Growth in the energy storage industry provides career paths and opportunities for new workers and energy workers who are looking to transition.
Long-Duration Storage Technology
Like existing storage technology, long-duration storage technology is necessary to maintain grid flexibility and reliability. However, the specific technologies and products are still being developed. Further research and development are needed, and the resulting innovation will need to be scaled to be commercially viable in the grid. State programs and funding should focus on research and demonstration projects, including developing and expanding a Storage Center of Excellence to develop and deploy new technologies.
Workforce Development
As part of workforce development, it is important to assist people currently employed in fossil fuel industries transition over so that they can find employment. For new clean energy workers, there are opportunities to provide education, training, and career opportunities around installation, manufacturing, and the rest of the supply chain. A community-to-employment pipeline with a clear career pathway and labor unions would help disadvantaged communities get started in the industry.
Access and Affordability for All
During the electrification transition, New York State will prioritize helping low-income utility customers and disadvantaged communities to be able to afford and fully enjoy the benefits of electrification. This requires improving the coordination of agencies and expanding programs to assist small businesses and households electrify. For example, modifying the Home Energy Assistance Program would help encourage electrification and reduce continued use of fossil fuels for both tenants and homeowners. Additional support needs to be provided to low-income and disadvantaged communities so they can afford to electrify, and alternative rate structures could be studied in order to determine how best to protect low-income, disadvantaged communities, and small businesses from large cost shifts.
Growth of Large-Scale Renewable Energy Generation
More renewable energy needs to be procured and developed to meet the CLCPA goals for both 2030 and 2040. As a result, the deployment of solar, land-based wind, and offshore wind energy systems needs to be accelerated. Progress has been made to meet the “70% renewable electricity by 2030” goal with upstate renewable energy installations, and further deployment is needed downstate. New transmission and distribution systems will be needed to deliver energy to meet demand, which means that the necessary upgrades, improvements, and new construction needs to be identified. In order to meet the CLCPA goals in the expected timeline, the renewable generation and distribution projects need to be installed, constructed, and upgraded as efficiently as possible.
Reliability for the Future Grid
Generation resources, transmission and distribution systems, control centers, and wholesale markets combine to create a reliable energy system that provides New York with electricity. These components need to effectively transition in tandem to maintain the grid and reach the CLCPA goals while also developing a more flexible and resilient grid to mitigate and address the impacts of climate change. Continued improvements to reliability and resiliency are necessary so that the grid will be able to withstand extreme weather events. Biennial checkpoints should be established and conducted to assess the reliability of the bulk power system and whether any adjustments need to be implemented. Beyond affordability concerns, disadvantaged communities are also disproportionately affected by power outages because they are less likely to be able to recover from the loss of property or to afford mitigation measures for safety and health risks. Therefore, disadvantaged communities should be prioritized in terms of restoration of service.
Distributed Generation and Distributed Energy Resources
Energy efficiency, carbon pollution, and grid resiliency are all improved by generating smaller amounts of clean electricity closer to end-users. Distributed generation can also potentially diminish the need for costly transmission investments. A streamlined, efficient process for installing distributed energy resources (DERs), including procurement, siting, interconnection, and construction, is necessary. The local transmission and distribution infrastructure also needs to be expanded further, and the development of innovative technologies and programs need to be accelerated. DERs deployment and usage could be incentivized by an underlying electric rate structure that provides appropriate price signals to customers. In addition to improving reliability and air quality, distributed generation and DERs can also provide communities with an opportunity to participate in the energy industry with economic and workforce development opportunities in operation, maintenance, and transmission construction.
Gas Infrastructure, Transmission, and Methane Leakage
New York State will still use natural gas as decarbonization continues. Therefore, methane leakages from the natural gas infrastructure need to be addressed, since methane is a dangerous greenhouse gas. The natural gas infrastructure is extensive, and is often underground and within buildings, which makes leakage detection and repair challenging in populated areas. Leakage detection technologies need to continue being researched and developed, and efforts to detect and repair leaks need to be coordinated. There are additional regulatory considerations with respect to natural gas infrastructure because the Federal Energy Regulatory Commission oversees natural gas approvals and interstate transmission.
Retirement of Fossil Fuel Fired Facilities
In order to reduce emissions, fossil fuel-fired generation resources need to be phased out as quickly as possible without losing any system reliability. Therefore, a timeline and plan need to be developed in order to diminish emissions in line with the CLCPA goals. Closures and reliability assessments need to be coordinated between State Agencies (e.g., PSC, NYSERDA) and other stakeholders (e.g., the NYISO, utilities and fossil fuel facility owners and operators). A moratorium on new and repowered gas generation facilities was mostly supported by members of the Power Generation Advisory Panel, so it was put forward as a non-consensus recommendation.
Clean Energy Siting and Community Acceptance
Communities need to be made aware of the benefits of renewable energy projects through public education and outreach in order to increase participation and acceptance. A Clean Energy Development Mapping tool would help municipal representatives and local communities make informed decisions for how to use their land and communicate with developers what they want. Local governments should also feel empowered to take the lead on educating the community about clean energy. Benefits and incentives need to be expanded and targeted, including host community benefits (e.g., NYSERDA’s Host Community Billing Program) and energy efficiency incentives (e.g., funding for customers based on utility payment history). Specific research needs to be undertaken to address agricultural impact concerns and incentivize pairing commercial rooftop solar with storage. Municipalities, local communities, and disadvantaged communities need to have more information, resources, and control to decide whether to develop renewable energy projects in their communities. These local energy projects would benefit the local community with utility cost savings, local infrastructure development, and job opportunities.
Energy Delivery and Hosting Capacity
Improving the energy delivery system will make it easier to incorporate renewable energy sources and move away from fossil fuel-based generation facilities. Therefore, planning and implementation policies are needed to build out delivery options, including short- and long-term transmission and distribution investments. There is a cost comparison to make between locating resources in high-cost areas and investing in transmission and distribution infrastructure. Additional research and deployment of advanced grid technologies will reduce system congestion, optimize existing capacity, and allow more renewable energy resources, among other benefits. The decision to locate resources in high-cost areas should be compared with transmission and distribution infrastructure investments to reach a more equitable cost option. New York State can be more involved in locating optimal sites for clean energy projects, connecting with stakeholders and serving as an informational resource and bridge to the NYISO.
Final Thoughts
The energy system is a complicated and interconnected network of generation, transmission and distribution, and storage resources. Existing programs need to be supported for current development, but there are also many opportunities for further research and development that will help give New York State a more advanced, resilient, and flexible energy system. In order to meet the CLCPA goals in the expected timeframe, initiatives need to be expanded and technology innovation needs to be accelerated.
