New York State’s Clean Energy Standard, approved by the Public Service Commission on Aug. 1, will have an unprecedented impact on the nuclear power industry.
It includes what has been called a consumer-funded bail out of upstate New York’s struggling nuclear power plants.
Nuclear energy is treated in the state’s plan as a bridge to a renewable energy future. The commission said nuclear is necessary to maintain stability in the power grid as New York makes the transition toward the standard’s goal of 50 percent renewable energy by 2030.
By subsidizing nuclear power alongside solar and wind, the state is making a bold statement about the value of nuclear reactors as zero-emission energy sources. This could ripple to other states, inspiring similar initiatives to revive the sputtering nuclear industry.
Impacts of the clean energy plan on the nuclear, solar, and wind industries will affect New Yorkers in many ways.
For the upstate communities surrounding the nuclear plants, the commission’s decision to approve the standard brings new hope. The plants may have shuttered without the help of these subsidies, taking thousands of jobs and massive contributions to the local economies with them.
Upstate communities can also expect to see more large-scale wind and solar farms. Debates about the pros and cons of these farms are bound to ensue, as many such projects have already been slowed or halted due to community opposition.
Consumers all over New York will help cover the costs of implementing the Clean Energy Standard. But Governor Andrew Cuomo’s office estimates consumers will only see an increase on their power bills of about $2 per month or less.
How It Works
Electricity providers will be required to obtain a targeted number of renewable energy credits (RECs) and zero-emissions credits (ZECs) each year.
A REC is created each time 1 megawatt-hour (MWh) of electricity is generated by a renewable resource. RECs can then be sold and traded among providers.
