Economic Impacts / Costs

3/19/24
NYSERDA seeks PR firm to boost image of state’s green energy transition
Times Union, Rick Karlin
NYSERDA, the New York State Energy Research and Development Authority, is offering $500,000 for a one-year contract to a PR-firm to help “maintain a positive narrative” about switching to solar and wind, despite cost worries and even though it already has a considerable in-house public relations staff. Empire Center Director of Research Ken Girardin said the solicitation to promote a specific law is unprecedented, especially since NYSERDA is partially funded by utility bill surcharges as well as taxpayers. Western New York GOP Sen. George Borrello said “It’s kind of sad that they are spending taxpayer money to prop up a political narrative.” Cost are rising substantially on renewable energy projects and elected lawmakers are worried about being blamed for policies that could result in large increases in prices at the gas pump and home heating bills.

3/7/2024
Green Guardrails Webinar
Empire Center, Ken Girardin
Ken Girardin examines the implementation of New York’s Climate Leadership and Community Protection Act, the sweeping 2019 law that allows state agencies to regulate nearly every part of the economy to reduce greenhouse gas emission and increase renewable energy production. His research reveals state officials misrepresented costs, failed to issue legally required studies and made highly questionable assumptions about how the electric grid will function in 2030. The report includes steps policymakers can take to increase transparency and shield New Yorkers from looming cost increases and threats to reliability.

2/2024
Green Guardrails, Guiding New York’s Drive to Lower Emissions
Empire Center, Ken Girardin
A summary and review of how we got where we are in terms of energy issues in NYS. The Climate Leadership and Community Protection Act (CLCPA) climate law was designed to reduce greenhouse gas emissions through bans, regulations and taxes, but leaves the bulk of the decisions about how emissions will be reduced to state agencies under direct control of the governor. There is growing evidence that the state will be unable to achieve its goals without significantly affecting the cost of living and doing business in New York and harming the reliability of its electric grid.

1/3/24
Albany’s Green Machine Goes Rogue
Empire Center
Ken Girardin
Equinor renewable developer asked the state Public Service Commission (PSC), which signs off on the subsidies, to boost its guaranteed minimum revenues by roughly $6 billion to $13 billion over 25 years. The PSC rejected the demands, saying in October the changes “were not in the best interest of the State’s ratepayers.” But NYSERDA, the state energy agency which negotiates and dispenses subsidies, looks to be ignoring the concerns raised by the PSC, with a plan for new “expedited” subsidy opportunities seemingly tailored for existing solar or wind projects that had been denied extra funding. NYSERDA already expected to pay around $44 billion in coming decades for the offshore wind subsidies awarded so far, with about half of the funds coming from homes and businesses north of New York City. It may be months before New Yorkers know who’s in control of the state’s potentially runaway renewable costs. They can be certain in the meantime, however, who will be stuck paying them.

9/8/23
New Wind Energy Costs Blow the Doors Off Projections
Empire Center
James E. Hanley
The myth that New York can replace fossil fuel power plants with cheap renewable energy has begun to crumble under renewable developers’ demands for higher prices to offset inflation and supply chain challenges. Multiple offshore wind projects that are not even built yet have asked the state’s Public Service Commission (PSC) to renegotiate their strike prices—the amount they will be paid per megawatt hour (MWh) of electricity produced. The demands for price adjustments are coming from onshore wind and solar power as well. Like the offshore wind projects, these facilities are not yet built but already the prices developers agreed to are allegedly no longer financially viable. New Yorkers have long been promised a bright future of energy that’s both climate– and wallet–friendly. It’s increasingly clear that whatever gains are made on the climate front, the price is going to be higher than advertised.