New York renewable energy blow as $11bn power line plan axed
Empire State's ambitions for 70% decarbonised grid by 2030 challenged by rising costs and surging power demand as Invenergy and energyRE nix Clean Path
Invenergy and energyRE have cancelled their $11bn Clean Path New York high voltage direct current (HVDC) power line that aimed to deliver 3.8GW of renewable energy to New York City, in the latest blow to the state’s climate ambitions.
The proposed 175-mile (281km) power line originating upstate was announced in 2021 and sought to wean the state’s largest load centre off its aging fossil fuel plants.
It was being developed with the partner’s joint venture (JV), Forward Power, as well as state corporation New York Power Authority (NYPA), in a public-private partnership under contract with the New York State Energy Research and Development Authority (Nyserda).
The agency overseeing the state’s energy transition notified utility regulator Public Service Commission (PSC) 27 November that the contract for renewable energy credits (RECs) “has been terminated by mutual consent.”
“NYPA will continue to work on modernising the grid and addressing New York State’s transmission needs to support its long-term goals,” Craig added.
“As we continue to advance our portfolio of renewable energy projects across the state, we will evaluate solutions for addressing the largest transmission bottlenecks facing New York’s electric grid,” she said.
Energy transition trouble
New York has struggled to advance its climate and energy ambitions in the face of surging inflation, supply chain turmoil and regulatory hurdles.
More than two-thirds of its onshore renewables contracts and over 6GW of offshore wind were cancelled last year, and the state is widely expected to miss its 2030 target of 70% clean energy generation by several years, possibly by 2033.
Despite already generating 46% of its total power demand from clean sources, overwhelmingly nuclear and hydroelectric dams, Nyserda expects to fall short of its 2030 goal by some 37%.
Offshore wind
New York’s 9GW by 2035 offshore goal will be hard pressed as well. The state currently has 1.8GW of capacity under contract in three projects, including Orsted’s already operational 132MW South Fork and 920MW Sunrise array under construction, as well as Equinor’s fully permitted 801MW Empire Wind 1.
An avowed sector opponent, Trump has vowed to shut down offshore wind development “on day one” of his presidency, 20 January 2025.
The remaining two bidders in the NY5 – Copenhagen Infrastructure Partners and Orsted – have submitted early-stage projects that will need to go through the full federal review process before moving onto installation, which Trump is expected to slow walk.
Equinor has an additional 1.2GW in its Empire Wind 2 array that had been contracted by Nyserda before being cancelled amid inflationary headwinds. This capacity has been approved by BOEM but has not been submitted into the round.
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