NY STATE OF GRID

NYISO: Grid Outlook Is Positive, But Challenges Persist
27 April 2011 (Renew Grid)

"Although the immediate outlook for New York state's electric grid is generally positive, the sustained adequacy of power will be impacted by a range of challenges, according to a new report released by the New York Independent System Operator (NYISO).

"…[Power Trends 2011; Energizing New York’s Legacy of Leadership] is NYISO's annual review of the forces and factors affecting the state's electric system. According to the authors, developments over the past decade have contributed to a more reliable system, and with planned additions in the near future, the adequacy of power resources is not an imminent concern."

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"…[D]evelopments include smart grid efforts…to enhance the operation of the transmission and distribution systems, as well as to empower the end-use electricity consumer…[T]he new technology may be combined with consumer access to dynamic pricing that involves a rate structure reflecting the changing supply-and-demand conditions in the wholesale electricity market…

"…[T]he sustained adequacy of resources may be challenged by several factors…[including] the considerable lead time required for power infrastructure project development…Consequently, the report recommends that the planning horizons of policymakers and regulators encompass the time required for the electric industry to address new laws and changes in regulatory requirements [for financing, permitting and constructing major energy projects]."

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"…[There is also a] need to address aging generation and transmission infrastructure. As of the end of 2010, 60% of the state’s power-plant capacity was put into service before 1980. Similarly, 84% of the high-voltage transmission facilities in New York went into service before 1980…[It is especially urgent] to develop adequate replacement generation to serve southeastern New York in the event of the retirement of the nuclear power units at Indian Point…[so as] to prevent violation of mandatory resource adequacy reliability standards and maintain the supply of power and transmission voltage support needed to move electricity over power lines…

"…[T]he New York electric system faces the cumulative impact of impending environmental regulations…Renewable energy integration is also lacking, and although the mix of fuels used to generate electricity in New York is relatively diverse - including a relatively balanced mix of hydropower, nuclear, coal, natural gas and oil - fossil-fueled generation predominates in the high-demand downstate region…[Removing] barriers to trade among regional power markets, [increasing] renewable resources and energy efficiency, [improving] coordination among neighboring grid operators and…[planning] across the Eastern Interconnection…[could] yield annual savings of $193 million for New York."