The state of New York and developers of the 175-mile Clean Path NY transmission line have “mutually agreed to terminate” contracts underpinning the project, which was planned to come online in 2027.
The Clean Path project was billed as “critical” to achieving New York’s climate goals, including consumption of 70% renewable electricity by 2030 and development of a zero-emission electric grid by 2040. The transmission project aimed to bring almost 5 GW of wind, solar and hydroelectric power into New York City, where grid officials say electrification and data centers are contributing to potential electricity shortfalls in 2033 and 2034.
Clean Path NY is a collaboration between the New York Power Authority and Forward Power, a joint venture of energyRe and Invenergy.
The New York State Energy Research and Development Authority and Clean Path NY “have mutually agreed to terminate the project’s Tier 4 [Renewable Energy Credit] Purchase and Sale Agreement,” NYSERDA said in a statement. Tier 4 RECs support projects that can deliver renewable energy to New York City, which relies on older fossil fuel-fired power plants.
NYSERDA finalized contracts with Clean Path in 2021, and New York Gov. Kathy Hochul, D, said at the time that the arrangement “accelerates our pace” to achieve the state’s climate goals.
Invenergy and energyRe “remain committed to New York’s energy transition,” Amy Varghese, a spokesperson for Forward Power, said in an email.
NYSERDA informed the New York State Public Service Commission of the contract cancellation on Wednesday.
“As we continue to advance our portfolio of renewable energy projects across the state, we will evaluate solutions for addressing the largest transmission bottlenecks facing New York’s electric grid in order to deliver reliable and affordable power, good-paying jobs, and clean air for the Empire State,” Varghese said.
The New York Independent System Operator last month published its 2024 Reliability Needs Assessment, which identified a 17 MW shortfall in summer 2033 for New York City, increasing to 97 MW in summer 2034. And reliability margins could be deficient as soon as 2026 if the Champlain Hudson Power Express transmission project is not brought online by May of that year, the ISO said.
The Champlain Hudson line aims to bring power to New York City from Québec. Contracts supporting the project were approved by NYSERDA in 2021, at the same time Clean Path’s contract was finalized. Developers broke ground on the 339-mile line last month.
