While New York remains determined to meet ambitious climate goals, experts warn of rising costs

As the last six weeks have been the driest on record for New York City, officials appear more determined than ever to combat climate change.

Amidst the backdrop of the South Battery Park City Resiliency Project – City and State’s 2024 Clean Energy Summit took place at the Museum of Jewish Heritage, gathering industry experts and city officials leading the charge in New York’s shift towards renewable energy. As speakers stressed the opportunities ushered by clean energy, including a new Request for Proposals by the New York City Mayor’s Office of Climate and Environmental Justice, cost and affordability were among concerns addressed by panelists. 

In her keynote address, Doreen Harris, president & CEO of the New York State Energy Research and Development Authority, doubled down on the agency’s commitment to clean energy. 

“It is incredibly clear to me,” said Harris. “[that] it is very much the right thing to do and sets the stage for the global movement that is very much necessary to achieve our objectives and really to fight the existential threat, which is climate change.” 

In the last five years, NYSERDA met its quota of building six gigawatts of distributed solar energy, making New York the No. 1 community solar market in the nation. This benchmark was bolstered by robust investments in offshore wind in addition to progress on the Champlain Hudson Power Express project. 

Addressing the energy experts in the room, Kathleen Schmid, deputy executive director at the Mayor’s Office of Climate and Environmental Justice, announced that the agency released an RFP for the city’s NYC Accelerator initiative. 

By providing free resources, training and tailored support, NYC Acceloerator guides building owners and industry professionals to improve energy efficiency and reduce carbon emissions. Since 2021, the program has assisted over 22,000 buildings and kickstarted 25,000 retrofit projects— helping reduce carbon emissions by 19,400 tons and saving building owners more than $5 million in avoided penalties. By 2030, the new Accelerator will aim to reduce 1 million tons of carbon dioxide from buildings covered by local law 97 while retrofitting buildings to become more climate resilient. 

“So any of you who know candidates, vendors that would make great partners in a new accelerator, please connect the dots. Apply,” Schmid told attendees. “We have to show that this technology works on the ground, learn how to scale it, and we must show [that] it is also affordable for ratepayers and brings benefits to disadvantaged communities. We must do this work because the climate crisis is here in the city.” 

Among upcoming renewable projects, The New York Power Authority’s 2025 portfolio will include 40 projects that will bring 3.5 Gigawatts of potential capacity in every region, with solar power, land-based wind and battery energy storage systems. According to Justin E. Driscoll, president & CEO of the authority, the agency will update the plan annually and will pursue additions according to available capital. 

“We're committed to developing projects responsibly with respect to the communities that they're located in, and paying fair wages through union labor and project labor agreements on all such projects,” Driscoll said in his keynote. 

Since the plan’s release in October, the agency held five public hearings across the state with a final hearing scheduled this Monday on Long Island. 

While panelists urged attendees to push for meaningful strides in the city’s shift towards renewable energy – some brought attention to the inevitable costs that will follow these innovations. 

“How much are we willing to pay at what point in time to achieve those goals? Costs are going to need to be incurred, and that's going to come at ratepayers expense,” said panelist Clint Plummer, CEO of Rise Light & Power. 

“The final piece of this is policy support – which is a factor of cost effectiveness. New York State and New York City established some of the most ambitious, if not the most ambitious, goals of the state and city country, for the necessary transition to clean energy. We need clear policies and clear programs that create the pathway from the goal to an ability to recover an investment to achieve that goal,” he said. 

As panelists acknowledged that the cost of renewable energy developments will fall on ratepayers – many of whom struggle amidst the current affordability crisis, experts argued that such costs will hopefully be offset by the number of new workforce opportunities. Through partnerships with the CUNY and SUNY systems and public schools, the city aims to expand its outreach operations by recruiting a younger cohort of workers from diverse communities. Experts also encouraged partnerships with community-based organizations to empower local economies. 

“[We need to work] together with our community organizations, with our labor partners, looking at what our gaps are and fill those by working collaboratively,” said Alanna Russo, head of community engagement and partnerships of Community Offshore Wind. 

“We don't all have to be doing the same thing, but we all have to be moving in the same direction,” she said.