IPPNY Presents Testimony on the Future of Renewable Energy Development Programs to the New York State Assembly Committee on Energy
Albany, N.Y. – The Independent Power Producers of New York, Inc. (IPPNY) today presented testimony before the New York State Assembly Committee on Energy on the future of renewable energy development programs in New York once the Renewable Portfolio Standard (RPS) expires at year’s end. IPPNY’s Members strongly believe that the future success of renewables in New York largely hinges on the degree to which market signals and competition between private power producers determine investment.
The continuity of the RPS Main Tier for procuring large-scale renewables is critical for achieving the State’s renewable energy goals, especially considering that every $1 of State funding averages almost $3 in direct investments in New York, according to a report by the New York State Energy Research and Development Authority. State proposals that would allow utilities to own renewable generation overlook this return on investment and serve only to transfer costs directly onto energy consumers.
Since 2000, competitive markets have spurred the addition of more than 10,000 megawatts of generation capacity, and, of the over 6,000 megawatts of hydro and other renewable resource capacity that exists in the State, more than 1,700 megawatts comes from large-scale wind facilities developed since 2003. This fuel diversity protects New York’s energy consumers from dramatic price variations resulting from an overdependence on any one fuel type while simultaneously increasing our State’s electric system reliability and keeping emissions low.
“Independent power producers provide the power upon which consumers depend in diverse and efficient ways, and they recover costs in a competitive wholesale market instead of directly from ratepayers,” said Gavin Donohue, IPPNY President & CEO. “Utilities distribute that power and must ensure the lights come on when consumers flip the switch. Each is uniquely suited to deliver best on its respective duties, and that’s how it should remain.”
IPPNY’s aim is to ensure that policies, including those on small and large-scale renewables, are developed in a manner consistent with, and do not undermine in any respect, the continued functioning of reliable, competitive wholesale electricity markets in New York and its surrounding regions. These markets have resulted in lower emissions, greater efficiencies, and wholesale electricity prices that, when adjusted for inflation, were 34 percent lower in 2013 than in 2000.
IPPNY represents generators and other participants in New York’s competitive energy markets, including a number of companies that generate electricity using renewable energy resources. IPPNY’s Members drive the State’s economic engine by producing over 75 percent of New York’s electricity using a wide variety of generating fuels and technologies including cogeneration, nuclear, hydro, coal, wind, oil, landfill gas, and natural gas.
IPPNY Members have invested in excess of $10 billion to purchase, construct, and operate their facilities. Generators also pay annual taxes of over $600 million and invest $50 million in their communities as good corporate partners. In addition, these facilities provide well-paying jobs to more than 10,000 individuals across the State. Many of these facilities are either the largest or amongst the biggest employers and taxpayers in their local communities.
IPPNY’s full testimony is available here, and a webcast of the hearing can be found here.
-30-
