Energy Roundtable: Richard Kauffman

Q: Can you provide an update on the status of the Green Bank? 

RK: The $1 billion NY Green Bank, which opened earlier this year, is seeking financing partnership proposals. NY Green Bank’s goal is to help the private sector achieve scale as markets improve and accelerate the pace of energy efficiency and renewable energy projects in New York State. As the largest green bank in the nation, it will fill gaps in financial markets by working with the private sector to enable greater investment in clean energy. Currently, many clean energy projects are constrained by lack of financing. NY Green Bank will help fill this gap and will more effectively and strategically leverage ratepayer dollars, so there will be less need for traditional grants. NY Green Bank gets leverage for several reasons: It is engaging private-sector funds and gets paid back for the credit it provides, so it can recycle funds to facilitate further market transformation. As it accelerates commercial markets, it will move out of the way and let the markets work on their own. NY Green Bank is looking to close transactions in the coming months. 

Q: What are the most important energy issues facing New York and what, if anything, is being done to address them? 

RK: A key energy issue facing New York State is the need for a cleaner, more affordable, reliable and resilient energy system that preserves the environment, decreases utility bills and creates opportunities for economic growth. The state is addressing this by working to create a world-class energy system that will transform the energy industry. If we do this right, it will be a real first mover in developing clean energy policies in the United States that we hope others will follow. A major driver for this transformation is the Public Service Commission’s Reforming the Energy Vision initiative. This regulatory process will open the door to changing incentives and rules for our current utility systems, and will create new business models for the energy industry that will help drive economic development. With regard to greater deployment of renewable energy, through Gov. Cuomo’s $1 billion NY Sun initiative, New York State is building a bridge to a self-sustaining solar market by supporting solar on a large scale, giving the industry market certainty. As private investment in solar increases over time, public incentives will gradually decrease, as the state moves toward self-sustaining solar markets. By developing innovative market solutions, New York will be seen as a first mover in clean energy policies in the United States.