New York sets 50pc renewables mandate

OREANDA-NEWS. August 02, 2016. New York regulators today approved a plan to increase renewables to a 50pc share of the state's power generation and provide subsidies to its struggling nuclear plants.

The state Public Services Commission (PSC) unanimously approved the new Clean Energy Standard (CES). The 50pc target must be reached by 2030, under the plan. It is meant to be a key component of the state's efforts to reduce its greenhouse gas emissions by 40pc from 1990 levels by 2030 and 80pc by 2050.

"New York has taken bold action to become a national leader in the clean energy economy," governor Andrew Cuomo (D) said.

The decision gives New York one of the most aggressive renewable energy mandates in the US, along with California, which also has a 50pc by 2030 target, and Hawaii, which aims to get all of its electricity from renewables by 2045.

The CES, which takes effect next year, will require electric companies to surrender renewable energy certificates (RECs) for compliance and will allow for trading in the secondary market, a shift from how the state had run its RPS.

Under the nuclear component, three upstate nuclear plants will receive payments for zero-emissions credits (ZECs) for their generation, with the value to be based largely on the GHG emissions they help avoid. The subsidies have been controversial, as they could cost the state about \\$965mn in the first two years of the program. The nuclear power will not count toward the 50pc target.

PSC commissioner Diane Burman voted to concur with the proposal, rather than cast a full "yes" vote, criticizing the lack of alternatives to a potentially costly assistance package. Burman said she felt "disheartened" to have "no choice but to act quickly" in subsidizing nuclear companies.

"I am concerned about the cost," Burman said.

Exelon and Entergy, the owners of three upstate nuclear plants, have said they needed the PSC to act swiftly to ensure they can keep at least some of facilities open after years of financial losses and hostility from environmental groups and political leaders.

Exelon, which operates the Nine Mile Point and Ginna plants on the shore of Lake Erie, has warned that it would shut down both if the state could not muster a commitment on nuclear aid by September. The state's nuclear fleet produces 31pc of its total energy.

Entergy, which runs the Fitzpatrick and Indian Point nuclear plants, says the PSC ruling will not change its decision to close Fitzpatrick, although last month Exelon expressed interest in buying the plant, contingent on the subsidy's passage.

"Those negotiations can continue now that the CES has been approved, providing an opportunity to prevent the plant from being shut down," Exelon said.

Indian Point, located near New York city, would not initially receive ZEC payments under the regulations. Cuomo has called for the closure of the plant.

Environmental groups have opposed the nuclear payments, but overall say they are pleased with the PSC decision. "The Clean Energy Standard is a monumental step forward," said Lisa Dix, senior New York representative for the Sierra Club.