New York Finalizes Contracts for Clean Path NY and Champlain Hudson Power Express

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Gov. Kathy Hochul has announced that the New York State Energy Research and Development Authority (NYSERDA) has finalized contracts with Clean Path New York LLC for its Clean Path NY (CPNY) project and H.Q. Energy Services (U.S.) Inc. (HQUS) for its Champlain Hudson Power Express (CHPE) project to deliver clean, renewable solar, wind and hydroelectric power from upstate New York and Canada to New York City.

The state’s renewable energy and transmission projects are expected to deliver up to $7.4 billion in overall societal benefits statewide, inclusive of greenhouse gas reductions and air quality improvements, and $8.2 billion in economic development across the state, including investments in disadvantaged communities.

As the largest transmission projects contracted for New York State in the last 50 years, these projects will reduce the city’s fossil fuel use for electricity by more than 80% in 2030 when combined with the state’s deployment of clean energy and offshore wind. This announcement accelerates progress to exceed New York State’s goal for 70% of the state’s electricity to come from renewable sources by 2030 on the path to a zero-emission grid as outlined in the Climate Leadership and Community Protection Act.

“This announcement not only accelerates our pace to achieving the goal for having 70 percent of New York State’s energy to come from renewable resources, we’re also creating sustainable jobs, reducing our dependence on fossil fuels, and paving the way for cleaner air and a healthier future for all New Yorkers,” adds Gov. Hochul.

NYSERDA will also offer renewable attributes from these projects for voluntary purchase, finally enabling the many New York City organizations with interest in switching to clean energy, but who have been unable to do so on-site due to practical constraints, to go 100% renewable.

In January, as directed by New York State Public Service Commission’s (PSC) October 2020 Order, NYSERDA issued a renewable energy solicitation, known as Tier 4, seeking projects that can cost effectively and responsibly deliver renewable energy to New York City. If approved by the PSC, the selected projects are expected to deliver 18 million MWh of clean energy per year, or more than a third of New York City’s annual electric consumption, from a diverse and resilient clean generation portfolio including onshore wind, solar and hydroelectric power, backed by energy storage, from upstate New York and Quebec.

“If the largest city in the nation can rely on clean energy for power, any place can,” states Mayor Bill de Blasio. “New York is proving it’s possible to combat global warming and fight for climate justice by investing in water, wind, and solar energy. This is how we reduce fossil fuels, create thousands of union jobs, and build a sustainable future for all New Yorkers. It’s a historic day for our city and state.”

These contracts have been submitted to the PSC for approval and are subject to a public comment period that will run through February 7, 2022. The petition and contracts are available on the Department of Public Service’s website under Case Number 15-E-0302, where comments can be submitted. If the contracts are approved, NYSERDA payments will only commence for each respective project once the project has obtained all required permits and approvals, has completed construction, and is delivering power to New York City, which is expected to begin in 2025 for the fully permitted CHPE project and 2027 for the CPNY project.

“By every measure, the state’s game-changing procurement to responsibly deliver renewable energy to New York City was a resounding success, and the finalization of contracts signifies a major step forward in creating a more balanced, reliable and resilient energy system for all New Yorkers,” comments NYSERDA’s president and CEO Doreen M. Harris. “These massive green energy infrastructure projects, which will generate enough clean electricity to power millions of homes, will deliver tremendous economic benefits and thousands of new jobs statewide while reducing pollution and improving air quality in our most historically vulnerable communities.”

As a component of these landmark deals, Hydro-Quebec will purchase electricity from the planned Apuiat wind farm, developed by the Innu communities in Quebec, as well as enter into a partnership with the Mohawk Council of Kahnawà:ke for joint ownership of the line in Québec that will connect to the Champlain Hudson Power Express.

“We are honored to be part of New York’s bold plan to bring clean, reliable energy into New York City in 2025 – reducing harmful carbon emissions and improving air quality in disadvantaged communities while accelerating New York’s transition to a greener future,” says Sophie Brochu, Hydro-Québec’s president and CEO, and Transmission Developers Inc. CEO Don Jessome.

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