Persisting Green Energy Vision in New York Unabated
New York's Draft 2025 Energy Plan, aimed at reducing energy costs, fighting climate change, and creating over 60,000 net new jobs by 2035, has been making headlines recently. The plan, however, comes with a hefty price tag.
The plan's authors estimate that achieving the net-zero scenarios would require New Yorkers to spend an additional $270 billion, before accounting for inflation, between now and 2040. This investment is expected to be primarily directed towards the energy sector, with the requested rate hikes solely for natural gas and electricity delivery.
ConEd, the state's largest electric and gas utility, has requested double-digit rate increases for electricity and natural gas, costing consumers an additional $2 billion annually. Similarly, National Grid has filed for similar rate increases upstate.
The plan suggests that federal funding and permitting are essential to achieving its objectives. Producing enough hydrogen to power 17,000 megawatts would require building 13,000 megawatts of offshore wind capacity, which would require an investment of between $25 billion and $65 billion. The plan also recommends expanding alternative methods for mass-producing hydrogen, such as gasifying garbage and other waste products, but does not identify where the energy for this process will come from.
The plan projects that by 2040, pursuing net-zero policies would reduce New York's annual carbon emissions to about 125 million metric tons, which is 66% lower than the state's emissions in 2022. Even under the "No Action" alternative, the plan projects that annual emissions would decrease by 23%, thanks to existing state policies.
The plan assumes that consumers and businesses will welcome changes such as higher electricity prices, embracing electric heat pumps, and supporting electric utilities' ability to shut off large appliances remotely. However, these assumptions remain to be seen.
The state's climate plan commits to deploying 9,000 megawatts of offshore wind by 2035, despite the industry's bloated costs. The plan also claims someone will retrofit 17,000 megawatts of existing natural gas-fired generators to burn pure hydrogen by 2040. The plan, however, does not address where the energy for mass-producing hydrogen would come from.
It's worth noting that the plan does not mention any policies that would actually reduce emissions and benefit the economy, such as eliminating the ban on fracking or reopening Indian Point. Moreover, there is no information that Governor Kathy Hochul ordered the New York Power Authority in 2021 to build an advanced nuclear power plant in New York State.
As the plan moves forward, it will be interesting to see how New Yorkers react to these proposed changes and whether the state can meet its ambitious net-zero goals while balancing the needs of its citizens and the economy.
