Going "all-electric" in New York State will have to wait.
Governor Kathy Hochul admitted that New York isn't on track to hit its lofty renewable energy goals for 2030. State officials acknowledged in a recent progress report that New York’s goal to obtain 70% of New York’s electricity from renewable sources by 2030 (the 70% goal) and the goal of nine gigawatts of offshore wind by 2035 is not going to happen.
The Climate Leadership and Community Protection Act (CLCPA) 70% 2030 target was supposed to put the state on a path to have zero-emissions electricity by 2040, a deadline mandated by the law. The 2040 deadline is now also unlikely to be met.
Global economic conditions and rising energy demand made what was already an ambitious target impossible. Inflation, supply chain problems, high interest rates, and wars only add to the problems in transitioning to all-electric.
Consumer skepticism and pushback also play a big role. Many New Yorkers are not in favor of Hochul’s push to have them get rid of gas-powered cars, furnaces, hot water tanks, and grills. In winter climates that can be harsh, the reliability and affordability of natural gas are what many homeowners have come to rely on and want to keep.
Governor Hochul has pushed the 70% goal back three years to 2033. Many don’t think three years is going to make much difference. Back in December 2022, when Hochul doubled down on these unreachable goals, the NY Post called it “pure delusion” in an Op-ed piece, and that turned out to be true.
“It’s still worthwhile to push as aggressively as fast as we can for these goals. With fighting climate change… every little bit counts,” said Patrick McClellan, state policy director for the New York League of Conservation Voters.
Other than strong consumer reluctance, and even outright opposition, from ordinary New Yorkers, what caused the delay? Money, it’s always the money.
The majority of contracts related to transitioning to all-electric were canceled by developers after the Public Service Commission, supported by Hochul, rejected requests for larger subsidies in October 2023. The commission denied the requests for higher subsidies and the projects came to a halt. Developers were clear that they could not, and would not, continue with projects bid at pre-COVID prices.
Hochul complained that developers wanted to pass too much of the costs onto consumers, but that is who always pays for new infrastructure. Hochul’s 70% measure, and the eventual 100%, was always going to be on the backs of the ratepayer.
Additionally, new electric projects that have come online put heavy pressure on the reliability of New York’s grid.
Fossil fuel projects have been retiring faster than new renewables have come online. The state’s independent grid operator has warned that under high demand there may not be enough electricity available to meet peak electricity needs within the next decade.
Big energy-using projects like data centers, microchip plants, electric cars, and electric heat pumps increase how much electricity is needed overall in the state. As the electric need grows, so too does the amount of renewables necessary to hit that 70% goal.
If the Governor sticks with her goal of forcing ‘all-electric’ on New Yorkers we can expect more outages, higher costs, inconveniences, and perhaps even dangerous circumstances coming our way when the power goes out.