New York State Announces Clean Energy Funding Awards as Landmark Program Nears 2015 Expiration

ALBANY, NY (11/12/2014)(readMedia)-- Upon Governor Andrew M. Cuomo's announcement that the New York State Energy Research and Development Authority (NYSERDA) and Public Service Commission (PSC) have awarded $206 million to clean power projects under the Renewable Portfolio Standard (RPS) program, Anne Reynolds, Executive Director of Alliance for Clean Energy New York, offered the following statement:

"The Alliance for Clean Energy New York applauds this exciting news and commends the Administration's ongoing commitment to clean energy investment. By all accounts this was a highly competitive solicitation, with some strong projects selected and some strong projects not selected. There is still a vast untapped pool of renewable energy in New York, and we urge the state to continue its leadership role in clean energy by designing a next-generation RPS to be implemented starting in 2016."

For the four renewable energy facilities awarded contracts, the weighted average price was $22.96 per megawatt-hour of production, which is less than the two previous RPS Main Tier solicitations. With this announcement, the RPS Main Tier program will have brought more than 2000 megawatts of fuel-free capacity to New York State since it began in 2004.

A major assessment conducted in 2013 showed that the Main Tier program captures on average approximately $3 in direct investments for every $1 invested by the state.[1] These direct benefits come in the form of local job creation, tax payments (or payments in lieu of taxes) to schools and municipalities, landowner payments, and in-state spending related to project construction and ongoing operations and maintenance. The net rate impact of the RPS, which is funded through a surcharge collected from ratepayers, is projected to be "essentially zero" because the increased availability of fuel-free electricity lowers demand for, and thus the price of, fossil fuel generation.[2]

"The RPS continues to be a win for New York's environment and economy," added Ms. Reynolds. "This latest procurement underscores the great success of the program, which is currently set to expire at the end of 2015. With that deadline looming, the state needs to take action and develop an aggressive plan for investment in clean energy beyond 2015. With a new, next-generation RPS, New York can continue to meet an increasing portion of its electricity needs with clean and carbon-free power while promoting economic development and building a diverse energy supply. We look forward to working with the PSC, NYSERDA, and other stakeholders on the design and implementation of a new and improved RPS."

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About the Alliance for Clean Energy New York:

The Alliance for Clean Energy New York (ACE NY) is a broad coalition dedicated to promoting clean energy, energy efficiency, a healthy environment, and a strong economy for the Empire State, and is New York's premier advocate for the rapid adoption of renewable energy and energy efficiency technologies. www.aceny.org

[1] NYSERDA Renewable Portfolio Standard Main Tier 2013 Program Review: Direct Investments in New York State. Final Report. September 5, 2013.

[2] NYSERDA Renewable Portfolio Standard Main Tier 2013 Program Review: Volume 2 – Main Tier Current Portfolio Analysis. Final Report. September 5, 2013.