Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

New York green energy plans face hurdles amid rising costs

Published 2023-10-12, 05:08 p/m
Updated 2023-10-12, 05:08 p/m

Governor Kathy Hochul's green-energy objectives for New York are facing challenges due to increased costs and supply chain disruptions. Developers of wind farms and other renewable energy projects have requested increased subsidies, a move that could potentially double the financial burden on ratepayers from an estimated $10 billion to $22 billion.

The state laws require that by 2030, 70% of electricity should be generated from renewables such as solar and wind. Furthermore, offshore wind farms including Sunrise Wind, Beacon Wind, and Empire Wind I and II are mandated to produce up to nine gigawatts by 2035. Situated near Long Island, these four offshore wind farms could provide nearly half of this energy.

However, the developers of these offshore wind farms, including Equinor Renewables Americas and Orsted (CSE:ORSTED), along with the developers of 86 land-based projects, have sought increased subsidies due to cost and supply issues. Labor leaders have supported these requests in an effort to preserve jobs in the sector.

The Public Service Commission, led by Rory Christian, unanimously denied these requests. This decision was endorsed by Governor Hochul and supported by AARP in order to avoid setting a precedent and protect ratepayers. Advocates for low-income utility customers also argued against the additional financial burden that increased subsidies would bring.

If developers decide to withdraw from their contracts due to the denial of increased subsidies, the Energy Research and Development Authority could re-bid the contracts. However, this possibility has raised concerns among groups like the New York Offshore Wind Alliance about potential impacts on the progress of clean energy in the state.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.