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New York State and the developers of the 175-mile Clean Path NY transmission line have “mutually agreed to terminate” the contracts underpinning the project, which was scheduled to become operational in 2027.
The Clean Path project was described as “critical” to achieving New York’s climate goals, including consuming 70% renewable electricity by 2030 and developing a zero-emissions electricity grid for the 2040. The transmission project aimed to bring nearly 5 GW of wind, solar and hydropower to New York City, where grid officials say electrification and data centers contribute to possible electricity deficits in 2033 and 2034.
Clean Path NY is a collaboration between the New York Power Authority and Forward Power, a joint venture of energyRe and Invenergy.
The New York State Energy Research and Development Authority and Clean Path NY “have mutually agreed to terminate Level 4 of the project. [Renewable Energy Credit] Purchase and Sale Agreement,” NYSERDA said in a statement. Tier 4 RECs support projects that can supply renewable energy to New York City, which relies on older fossil fuel-fired power plants.
NYSERDA ended contracts with Clean Path in 2021, and New York Gov. Kathy Hochul, D, said at the time that the agreement “accelerates our pace” to meet the state’s climate goals.
Invenergy and energyRe “remain committed to New York’s energy transition,” Forward Power spokeswoman Amy Varghese said in an email.
NYSERDA notified the New York State Public Service Commission of the contract cancellation on Wednesday.
“As we continue to advance our portfolio of renewable energy projects across the state, we will evaluate solutions to address the largest transmission bottlenecks facing New York’s electric grid to deliver reliable power and affordable, good-paying jobs and clean air for the population. Empire State,” Varghese said.
The independent operator of the New York system published last month 2024 Reliability Needs Assessmentwhich identified a shortfall of 17 MW in the summer of 2033 for New York City, rising to 97 MW in the summer of 2034. And reliability margins could be poor as early as 2026 if the project of transmission Champlain Hudson Power Express does not start in May of that year. , said the ISO.
The Champlain Hudson Line aims to bring power to New York City from Quebec. Project support contracts were approved by NYSERDA in 2021, at the same time as the Clean Path contract was finalized. Developers began building the 339-mile line last month.
