With the Clean Energy Standard (CES), New York aims to implement the most ambitious and comprehensive clean energy goal in the state’s history.
Designed to reduce air pollution and avoid contributing to climate change, CES provides for diverse, yet reliable, sources of low-carbon energy. The program’s primary goal is requiring 50 percent of the state’s electricity be generated by renewable sources by 2030. This program is also expected to reduce greenhouse gas emissions by 40 percent by 2030 and 80 percent by 2050.
The phase-in begins this year as the state turns to more environmentally friendly energy generation sources such as solar and wind.
“The Clean Energy Standard is a really forward-looking plan,” says Javier Barrios, Managing Partner of the New York-based Good Energy. “It can lead to more investment, economic development and jobs in New York. But there is a modest price increase, so residents and business of New York need to be aware of additional fees on their electricity bills.”
To accomplish these low-carbon energy system goals, New York State plans to use renewable energy standard (RES) and the zero-emissions credit (ZEC).
Through the RES, every load-serving entity in the state has to buy renewable energy credits (REC) for retail customers. If load-serving entities aren’t meeting the REC obligation, they can also make alternative compliance payments (ACP).
The ZEC requires LSEs buy these credits from the New York State Energy Research and Development Authority. The number of ZECs required is based on LSE’s amount of statewide load per year.
Economic benefits of the CES could be almost $2 billion, and for every dollar invested by New York in renewable energy sources about $3 in private capital will also be put into communities throughout the state. In addition, investments in clean energy can protect customers from price spikes associated with changing fossil fuel prices.