The New York Draft State Energy Plan prepared by the New York State Energy Research & Development Authority (NYSERDA) comment period closed on October 6. This post summarizes the comments submitted by the New York Independent System Operator (NYISO). It turned out that there was so much information that I am going to do a follow up post describing their recommendations.
Net-Zero Aspirations
The Climate Leadership & Community Protection Act (Climate Act) established a New York “Net Zero” target (85% reduction in GHG emissions and 15% offset of emissions) by 2050 and has two electric sector targets: 70% of the electricity must come from renewable energy by 2030 and all electricity must be generated by “zero-emissions” resources by 2040.
According to the New York State Energy Plan website: “The State Energy Plan is a comprehensive roadmap to build a clean, resilient, and affordable energy system for all New Yorkers.” This is the first update of the Energy Plan since the Climate Act was passed in 2019, so it is being revised to incorporate the net-zero mandates. I have provided more background information and a list of previous articles on my Energy Plan page.
NYISO Overview of System Trends
The NYISO comments point out that there are three “structural trends” that create significant uncertainty about the future electric system:
The New York grid is at an inflection point, driven by the convergence of three structural trends: the aging of the existing generation fleet, the rapid growth of large loads, and the increasing difficulty of developing new dispatchable resources. These trends are not isolated, they are compounding. Generators in New York are among the oldest in the country. Large energy-intensive economic development projects, such as semiconductor manufacturing plants and data centers, are driving up demand for electricity significantly after relatively flat demand trends over the last decade. Collectively, all these elements create uncertain conditions today, in the near term, and in the longer term, and each uncertainty has the real potential to cause major impacts on electric system reliability. All electric industry stakeholders, including the state agencies involved, must be aware of and factor these concerns into their planning and strategy.
The comments describe five concerns associated with these trends:
- Electric Grid Concerns Exist Today
- Repowering Existing Generation and Introducing New Generation Will Prove Critical to Maintaining Electric System Reliability
- Existing Nuclear Generation is Critical to Meeting the Demands of New Yorkers
- Emerging Technologies and Other Resource Development
- Key Risk Factors Shaping the Grid
I will summarize each of these concerns
Today’s Electric Grid Concerns
The discussion of the current electric grid concerns addressed two of the structural concerns. The first discussion addressed the fact that reliability margins are eroding. Simply put more generation resources are retiring than being brought online: “As of June 2025, 4,315 MW have left the system while only 2,274 MW have been added since the passage of the Climate Act.”.
I submitted comments that explained that I believe that NYSERDA was only paying lip service to the stakeholder process. In the absence of a commitment to provide written documentation responding to all comments submitted that I decided not to try to review the Draft Energy Plan in any detail. Due to the press of other commitments, I only provided comments on the Health Benefits Analysis Chapter. I did not even read the other chapters. As a result, I was pleasantly surprised that the NYISO comments noted that the Electricity chapter of the Draft Plan “accurately points out” that:
Combustion generating units will remain essential parts of electric grid reliability and affordability. Retirement of these units will not be able to occur until resources that provide the same grid reliability attributes are put in place. Additionally, there are specific considerations with respect to the small clean power plants, or “peaking units”, owned and operated by NYPA. By 2030, NYPA will cease production of electricity at its peaking units unless the closure of any specific facility would result in increased emissions in a DAC or the facility is needed for reliability.
I agree that these are accurate statements. I provided a comment that pointed out that the Climate Act dismissal of natural gas attributes was irrational and that the arguments about problems with peaking units were wrong. The continued operation of these facilities will have no discernable impact on local neighborhood air quality and shutting them down is solely political virtue-signaling
The NYISO comments also noted that New York’s generators are among the oldest generators in the nation. I knew they were old but I was surprised that “New York’s statewide fleet of fossil-fuel-based generation includes more than 10,000 MW that has been in operation for more than 50 years.” Also, NYISO “supports and emphasizes” the Draft Energy Plan’s comment on the transmission system: “For several utilities serving the Hudson Valley and Upstate New York, 60 percent to over 95 percent of transmission structures are 70 years old or older.” In a rational world this problem would affect recommendations in the State Energy Plan.
The other structural concern address the fact that energy intensive development is driving up demand for electricity. Now, development projects, “such as microchip fabrication, bitcoin mining, and data centers, are projected to be major drivers of load growth, in addition to the electrification of the building and transportation sectors”. Their comments note that:
Large load projects can also be added to the system at a much faster pace than the new generation projects required to serve them. In the short term, this i) increases the pace required for constructing new renewable generation projects and ii) increases the reliance on existing fossil-fuel-fired generators, which thereby increases CO2 emissions. The coordination of new large load additions, new generation capacity, and retention of existing generators is very important to support economic development, maintain adequate generation capacity, and protect electric system reliability.
While I agree with most of the NYISO comments I am not optimistic about the potential that “Some large load projects also present opportunities to the electric grid with expected flexibility in the amount and timing of their demand for electricity from the grid.” The only new load that applies to is bit coin mining. I do not believe that semi-conductor manufacturing and data centers will cut back their operations for demand response programs.
The NYISO comments point out that “Access to renewable generation resources, sufficiency of overall generation available, and a robust transmission network should increasingly be an integral part of the consideration of where to locate large load projects.” I do not disagree but wish they had recommended co-generation as an alternative approach for these new sources.
Repowering and New Generation
I support the pragmatic suggestions that “Repowering existing generation can offer a bridge between old and new, the past and the future” and “Integrating new efficient fossil-fuel-based generation (which may be capable of operating with lower- or zero-emissions fuels in the future) will immediately improve electric system reliability and reduce total emissions”. The following sums up:
Using natural gas as the basis for combustion units for the foreseeable future necessitates improving and upgrading the aging generation fleet. Upgrading the existing fleet not only can help with a stepped approach to emissions reductions by replacing older, higher emitting turbines with new, low-emissions cutting-edge technology, it also holds the potential for avoiding future generator failures and improves generating flexibility that allows for more renewable energy generation, therefore bolstering grid reliability and further reducing emissions.
The NYISO comments addressed the need for replacing existing fossil fuel resources. While I wholeheartedly agree I also know that this is a line in the sand for many environmental organizations. The suggestion to repower existing generation and build new generators will ignite a passionate demand to kibosh that plan despite the argument that “new generation will prove critical to maintaining electric system reliability”. Thomas Sowell’s observation that “It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong” is apropos but it will come at a political cost for the ideological constituency that thinks that anyone who disagrees is evil.
Nuclear Generation
Similarly, the NYISO recommendation that “existing nuclear generation is critical to meeting the demands of New Yorkers” is certain to upset a vocal minority. They will still demand shutdowns even when the organization responsible for keeping the lights on says the existing nuclear facilities are needed because “Without the dynamic voltage support services of these key resources the electric system could not transmit power generated by emission-free resources in Western NY to serve load statewide.” Stay tuned to see how the final State Energy Plan resolves this.
Emerging Technologies
The NYISO comments discussed the importance of emerging technologies and other resource development:
As noted in the Draft Plan, many of the technologies necessary to meet system needs for firm, dispatchable capacity are not yet commercially available at scale. The development of these technologies must start now as these technologies need to be proven and deployed to the electric grid before the resources that currently supply the energy that consumers demand and the reliability attributes needed to support the grid can be retired.
There are vocal organizations that believe this is not true and that it is only a matter of “political will”. Again, we need to watch the resolution of this closely. It is long past time that New York energy policy return to those who are responsible for keeping the lights on and not the loudest voices in the room.
Key Risk Factors
The final technical discussion of concerns addressed key risk factors shaping the grid. NYISO stated that
Given the significant need for resources demonstrated by the Outlook and contemplated in the Draft Plan, the final State Energy Plan should explore all emerging technologies, while focusing on promising technologies that will be readily available sooner and continuing to invest in current technologies including repowering fossil-fuel-fired generation to support fuel diversity and overall electric system reliability.
This is a pragmatic approach. I hope this makes it into the final State Energy Plan.
Discussion
The conclusion of the NYISO comments stated that:
Strategic coordination between market design, planning, and policy will be essential to address emerging risks and maintain a reliable electric system. A reliable electric system is the only way to protect our health, safety, and welfare, and to meet the demands of societal preferences and public policies driving greater electricity usage. Reliable, dispatchable, and dependable electric generation is critical to every aspect of New Yorkers’ daily lives and is vital to the state’s economy.
I think these should be prime considerations in the Draft Energy Plan. The NYISO comments describe elements that “create uncertain conditions today, in the near term, and in the longer term, and each uncertainty has the real potential to cause major impacts on electric system reliability.” As much as I admire NYISO staff and analytic capabilities I think the massive changes associated with relying on inverter-based resources to the most complex machine ever created will inevitably cause reliability issues unless the schedule is made contingent upon feasibility analyses and methodical testing.
It is also disappointing that the affordability component of the electrical system transition has never been addressed by NYISO. The NYISO resource modeling analysis includes cost information necessary to develop future projections of resource distributions. I suspect that their cost projections are significantly higher than the NYSERDA work so release of that information would be politically embarrassing. While I sympathize with the need to get along with politicians, I believe it is not in the best interests of the citizens of New York who have never been provided with transparent cost estimates.
Conclusion
The description of the uncertainties associated with three structural trends in the New York grid should be a wakeup call to New York politicians because they explicitly say the plan cannot work on the current schedule. The final State Energy Plan will ultimately be consistent with some political narrative and not necessarily what the experts are saying. Milton Friedman noted: “One of the great mistakes is to judge policies and programs by their intentions rather than their results”. The NYISO comments clearly state the results are inconsistent with the aspirational intentions of the Climate Act. It is time for the politicians to concede that we need to pause implementation and reassess what is possible with current technology.


























