“New York’s grid infrastructure is the backbone of energy distribution and we must maintain its reliability and resiliency to withstand extreme weather events,” Governor Hochul said. “This federal formula grant complements ongoing State investments to meet the growing energy needs of families and businesses in our communities.”
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “NYSERDA is pleased to offer this new grid modernization program with funding from the U.S. Department of Energy to municipal electric systems and rural cooperatives interested in advancing projects that strengthen and enhance grid resiliency. We look forward to working with future partners to deliver projects that help provide clean energy to New Yorkers and support the State’s transition to a modern, zero-emission electric grid.”
Proposers must select one project type per application. Proposals will be accepted through 3 p.m. on February 12, 2025. More information about this solicitation is available on NYSERDA’s website .
NYSERDA also offers$3.5 million in technical assistance to support the development of grid modernization proposals for this solicitation. The technical assistance is available on a first come, first served basis for a one-time maximum award of up to $200,000 per applicant. It can be used to support the technical analyses needed to evaluate potential projects, grant writing assistance for implementation funding, and development of a metrics reporting system to evaluate project success.
New York State Public Service Commission Chair Rory M. Christian said, “This federal funding to assist municipal electric systems and rural cooperatives will help strengthen and enhance grid resiliency in New York State. Kudos to Governor Hochul for putting together a team to help New York transition to clean-energy electric grid.”
New York Association of Public Power President David Leathers said, “The grid resilience grant opportunities represent a very significant contribution towards enhancing electric system reliability and driving infrastructure improvements for our customers and members. The consumer-owned municipal and rural electric cooperative utility systems in New York certainly appreciate the important partnership we have with NYSERDA.”
Municipal Electric Utilities Association of NYS Executive Director Jim Stokes said, “The funding provided by this program serves a critical need as our municipal utilities work to modernize aging infrastructure in manner that minimizes the financial impact on our customers. We appreciate Governor Hochul and NYSERDA''s commitment to addressing this need.”
New York State''s climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.
NYSERDA offers objective information and analysis, innovative programs, technical expertise, and support to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. A public benefit corporation, NYSERDA has been advancing energy solutions and working to protect the environment since 1975.
New York''s planned phase out of several small gas-fired power plants in New York City and Long Island contributes to a new reliability deficiency by 2033, according to the findings in the NYISO''s 2024 Reliability Needs Assessment (RNA).
Language in the state''s 2023-2024 budget requires the New York Power Authority (NYPA) to phase out certain small natural gas generators in and around New York City and Long Island, unless the generators are needed for electric system reliability. The recently published RNA captures this requirement, modeling 517 megawatts (MW) of NYPA''s small generator capacity as out-of-service beginning in January 2031.
New York City and Long Island are transmission-constrained areas and have needed to rely on local, fossil-fuel generation plants to serve load during times of peak demand, such as the hottest summer and coldest winter months. The RNA forecasts increases in demand due to electrification as contributing to the reliability need.
Since 2023, 1,027 MW of installed capacity from such fossil-fuel generation plants have been deactivated or have limited operation under the Department of Environmental Conservation''s Peaker Rule, which requires certain fossil-fuel generation plants to adopt stringent pollution controls or shut down by certain target dates.
With the assumption that NYPA small natural gas generators are unavailable and the forecasted increase in demand due to electrification, the RNA concludes that the bulk power transmission system will not be able to serve the forecasted demand reliably under normal weather conditions beginning in the summer of 2033. The deficiency grows from 17 MW to 97 MW by summer 2034. The combination of forecasted load growth and extreme weather, which often drives demand even higher, raises the risk of outages.
The Climate Leadership and Community Protection Act (CLCPA) requires the state''s electric grid to be carbon-emissions free by 2040. Under this mandate, all fossil fuel generation in the state must eventually be retired and replaced with CLCPA-compliant resources. Notably, the RNA only considers generator retirements that have been identified either through statute or based on notices of retirement submitted to the NYISO.
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