NY Power Grid Faces Shortfalls as New Energy Supply Lags, Operator Reports

By Laila Kearney

NEW YORK (Reuters) – New York’s electric grid is at risk of supply shortages if the trend of retiring old fossil fuel power plants continues to outpace the growth of clean energy sources while demand escalates, warned the state’s grid operator on Thursday.

The state is committed to achieving a 100 percent clean energy grid by 2040 as part of its efforts to reduce carbon emissions and mitigate climate change. This initiative necessitates a significant expansion of renewable energy resources and the phase-out of fossil fuel-powered facilities.

Since setting its clean energy objectives five years ago, New York has lost 5,207 megawatts of fossil fuel power supply while only adding 2,256 megawatts from renewable sources such as wind and solar, according to the latest annual reliability report from the New York Independent System Operator (NYISO).

As traditional power supply diminishes, demand is surging, driven by energy-intensive data centers, manufacturing, and the electrification of vehicles and buildings due to climate concerns.

In the next two years, New York is expected to launch at least 10 major power-demanding projects, including data centers and semiconductor fabrication plants. Notably, the new Micron Semiconductor facility will require 480 megawatts of capacity, an amount sufficient to power around 400,000 homes.

The combination of increasing demand and decreasing supply could challenge New York’s grid, particularly during prolonged heat waves with temperatures reaching 95 degrees Fahrenheit for three or more days. Under such conditions, total grid supply is projected to be approximately 34,500 megawatts while demand could peak at 33,300 megawatts, resulting in a deficit of 2,600 megawatts in necessary operating reserves.

To manage the situation, the grid operator mentioned that emergency power could be sourced from so-called peaker plants; however, these facilities generally rely on fossil fuels and are costly to operate.

The grid operator emphasized the need for greater investment in transmission infrastructure and an expedited regulatory process for building this essential network to prevent blackouts and rising electricity costs over the next decade.