USA – NEW YORK Trends and Developments Contributed by: Marius Griskonis, Lauren Bachtel, Michael Rodgers and Diana Jeschke, Linklaters
indices, whereas the developer will pay NYSERDA if the strike price is below it. In July 2025, NYSERDA issued the first of three ISC solicitations (ISCRFP25-1) to procure 3 GW of total bulk energy storage capacity by 2030, which garnered interest from 46 proposals comprising approximately 6 GW of power capacity and 30 GWh of energy storage capacity. NYSERDA will disclose the results in Q3 2026. Given the scale of the proposed renewable energy buildout, the Scoping Plan recognises the need to incorporate load flexibility for a manageable system, which will necessitate investment in zero-emission resources such as green hydrogen and energy stor- age. In 2025, the State made USD3.7 million available to support clean hydrogen-based fuel cell resources and awarded over USD11 million to clean hydrogen research and development projects. The State can potentially boost its grid’s flexibility through electric vehicle (EV) charging, which a January 2025 Brattle report commissioned by the New York Department of Public Service (NYDPS) identified as the primary opportunity to build load flexibility. The report identified certain programmes that stabilise the State’s grid, including behind-the-meter storage programmes, EV-managed charging programmes, and a pilot for NYC’s first vehicle-to-grid programme in Brooklyn, New York. In May 2025, State agencies formed a working group to accelerate clean vehicle adoption and charging infrastructure deployment, and, in July 2025, the State awarded USD3 million to projects integrating EVs into the grid. Geothermal and nuclear energy as emerging resources The Scoping Plan recognises the potential of devel- oping utility thermal energy networks across the State’s utility service territories and enhanced geo- thermal systems (EGS), noting benefits from national progress, including through the U.S. Department of Energy’s (DOE) Enhanced Geothermal Shot, an initia- tive to reduce EGS costs by 90% to USD45 per meg- awatt-hour (MWh) by 2035. As emerging commercial geothermal installations and thermal energy storage systems benefit from federal tax credits, they could potentially establish a gas utility transition strategy.
With respect to nuclear energy, the Scoping Plan finds that, while waste management and storage issues need to be resolved before scalable adoption, nuclear generation provides significant baseload capacity and is zero-emission, with advanced small modular reac- tors emerging as another resource that could con- tribute to 100% zero-emission electricity by 2040. Therefore, analysis should be conducted before 2030 to determine whether subsidising the State’s remain- ing nuclear reactors will be necessary to achieve the State’s zero-emission electricity goal. Federal tax credit incentives and other federal fund- ing have increased advanced nuclear energy pros- pects. The New York Power Authority (NYPA) and the NYDPS plan to develop at least one new nuclear energy facility with a combined minimum capacity of 1 GW. In 2025, NYPA issued two Requests for Infor- mation (RFIs): one for upstate communities interested in hosting a nuclear project and another for private developers with experience in nuclear project devel- opment. In 2025, NYPA and Ontario Power Generation announced an agreement to collaborate in developing advanced nuclear energy technologies, and, in 2026, Governor Hochul announced the “Nuclear Reliability Backbone” initiative to establish 8.4 GW of nuclear generation, comprising 3.4 GW of existing nuclear capacity, 1 GW of advanced nuclear development underway by NYPA, and an incremental 4 GW of new nuclear capacity. NYSERDA and NYDPS are also developing a Master Plan for Responsible Advanced Nuclear Development in New York before 2027. Transmission infrastructure investments New York has taken significant steps towards the transmission system investments necessary to deliver energy to load-demand locations and facilitate the Cli- mate Act’s goals. The PSC launched the Coordinated Grid Planning Process (CGPP) in 2023, involving a three-year planning framework to identify distribu- tion, local transmission, and bulk system upgrades needed to meet the Climate Act’s goals. In May 2026, the State’s investor-owned utilities filed the resultant “Cycle 1 Report”, identifying a local transmission pro- ject portfolio and requesting approval for seven pro- jects to address transmission issues. The next CGPP cycle is expected to begin in late 2026, after PSC action on the Cycle 1 Report.
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