Enhanced Compensation Will Ramp up the Development of NYPA Solar Projects

Compensating Distributed Energy Resource Projects Based On Their Grid Location Improves Grid Resiliency While Providing Economic Benefits to the Customers

ALBANY — The New York State Public Service Commission (Commission) expanded compensation eligibility for renewables hosted by customers of the New York Power Authority (NYPA) located in Consolidated Edison of New York, Inc.’s (Con Edison) service territory for excess electricity generated by eligible distributed energy resources (DER) projects. This will allow NYPA’s customers to assist the furthering of the State’s renewable energy goals.

“Under Governor Cuomo’s leadership, New York is leading the nation in its commitment to reduce carbon emissions,” said Commission Chair John B. Rhodes. “With the Governor’s Green New Deal goal to achieve a zero-carbon emissions electricity sector by 2040, today’s action will further encourage the development of distributed energy resource projects in New York City which are both clean and contribute to grid resiliency.”

NYPA’s New York City customers include a variety of public, non-profit and business customers such as the New York City government, the Metropolitan Transportation Authority, hospitals, museums, and universities.

Today’s Commission action will allow Con Edison to compensate NYPA customers who install on-site and remote net-metered DER projects making these projects more affordable. According to NYPA, expanding Value Stack eligibility to NYPA customers will open up DER market potential in the Con Edison service territory that will help New York meet the goal of installing 6,000 megawatts of distributed solar by 2025, enough to power nearly 5 million homes. It will also present the DER developer community with additional business opportunities and further animate the DER markets in New York. This will be particularly beneficial to the development of renewable projects in New York City as many of NYPA’s customers have already declared their commitment to develop renewable energy projects.

New York’s energy supply has been going through significant changes since the Commission began implementing Governor Cuomo’s Reforming the Energy Vision (REV) strategy in 2014. Governor Cuomo’s Green New Deal continues this progress calling for the addition of significant amounts of new clean energy on the system. A central theme of REV is that renewable energy projects should be compensated based on where they are located on the grid and when they generate, thereby reducing cost shifting while still providing solid and reliable returns to DER projects.

Under the Commission’s Value Stack policy, certain local clean energy generation is compensated for the value it provides to the overall system. The compensation is in the form of bill credits to customers who also consume electricity. The Commission had previously granted Value Stack compensation to Con Edison’s non-NYPA customers.

Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 19-E-0464 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

New York State's Green New Deal

Governor Andrew M. Cuomo's Green New Deal is the most ambitious climate change program in the nation and puts the State on a path to being entirely carbon-neutral across all sectors of the economy, including power generation, transportation, buildings, industry and agriculture. The Governor's program also establishes a goal to achieve a zero-carbon emissions electricity sector by 2040, faster than any state in the nation. The recently passed Climate Leadership and Community Protection Act mandates several of the Governor's ambitious Green New Deal clean energy targets: installing six gigawatts of distributed solar by 2025, three gigawatts of energy storage by 2030, and at least nine gigawatts of offshore wind by 2035. The CLCPA also calls for an orderly and just transition to clean energy, creating jobs while spurring a green economy. It builds on New York's unprecedented ramp-up of clean energy including a $2.9 billion investment in 46 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector and 1,700% growth in the distributed solar sector since 2012. The CLCPA also directs New York State's agencies and authorities to work collaboratively with stakeholders to develop a plan to reduce greenhouse gas emissions by 85% from 1990 levels by 2050, and to work toward a goal for disadvantage communities to receive 40% of the overall benefits of spending on clean energy and energy efficiency programs, projects or investments.

Reforming the Energy Vision

The CLCPA builds on Governor Cuomo's landmark Reforming the Energy Vision strategy to lead on climate change and grow New York's economy. REV is building a cleaner, more resilient and affordable energy system for all New Yorkers by stimulating investment in clean technologies like solar, wind, and energy efficiency. Already, REV has driven growth of nearly 1,700 percent in the statewide solar market, leveraged nearly $3.4 billion in private investments, improved energy affordability for 1.65 million low-income customers, and led to more than 150,000 jobs in manufacturing, engineering, and other clean tech sectors across New York State.

To learn more about REV, visit rev.ny.gov, follow us on Twitter, Facebook, and LinkedIn.