As Extreme Heat Drives Record Electricity Demand, Comptroller Levine Calls for a Comprehensive Strategy to Expand Renewable Energy...

Expanded Portfolio of Distributed Energy Resources Would Improve Grid Capacity and Reliability During Peak Demand Periods

New York, NY - A new report from New York City Comptroller Mark Levine finds New York City could dramatically expand solar energy and battery storage by leveraging thousands of acres of municipal land. As extreme heat and severe weather continue to strain the City's power grid, the Comptroller is calling on the City to adopt a comprehensive strategy to unlock those public assets, strengthen grid reliability, lower energy costs, and prepare for rising electricity demand.

"The July heat wave underscored the urgency of strengthening New York City's energy resilience. Localized outages and emergency conservation measures showed why every neighborhood needs more reliable, distributed sources of power," said City Comptroller Mark Levine. "We cannot accept the public health risks or the financial consequences of a major blackout. City government controls thousands of acres that could be used to generate and store clean energy, helping keep the lights on when extreme heat and other emergencies strain the grid. We should begin putting those assets to work now, before the next crisis tests a system we know is under growing pressure."

The report, Meeting New York City's Energy Demand Challenge, explores the progress New York City has made in generating power within the five boroughs, as well as its permitting and inspection processes that balance clean power with public safety. With both temperatures and energy demand climbing, the report finds that the City can do more to ease an overburdened grid and address growing energy fiscal issues. Just this month, back-to-back heatwaves bookended violent summer storms, highlighting this urgency as Con Edison reported 80,000 outages across the five boroughs between July 2nd and July 3rd, and 173,700 total between July 2nd and July 5th (including Westchester County).

Distributed energy resources like solar panels and battery storage should play a role in reducing peak demand and improving the reliability of our grid. Yet they make up a mere 1.5% of the Big Apple's power sourcing. Maximizing public assets could vastly increase that percentage. The Comptroller's new report made the following recommendations:

• Develop a Citywide Solar and Storage Portfolio. As electricity demand rises and municipal fleets electrify, the City should shift from isolated projects to a portfolio strategy that treats public assets as a coordinated network of energy-generating and energy-storing infrastructure. By bundling projects into a coordinated portfolio, the City can create a project pipeline better aligned better for long term infrastructure investors and financing

• Remove Barriers to Deployment. While the City also boasts a safety framework for renewable energy deployment, permitting often slows down solar and storage projects. The report noted that faster and more predictable permitting, as well as interconnection processes through the utility, can lower finance costs and speed up development timelines. Such a step can also spur residential battery storage, which remains virtually non-existent in New York City due to arduous rules. Permitting and inspection for homeowners can add as much as $7,000 to a solar project, contributing to nearly a quarter of those never being completed.

• Pass Clean Energy Legislation. Comptroller Levine also recognizes legislation before the City Council that would speed up permitting and leveraging municipal sites. This includes modernizing fire codes, speeding permitting process for mid-sized projects without compromising safety standards, as well as identifying suitable municipal locations for battery storage, then create deployment targets.

• Capture Available Dollars for Deployment. While the federal government has scaled back its clean energy tax credits for solar projects, Washington still provides opportunities for battery storage through 2033 - including tax credits of up to 30 percent of project costs. The FY27 State budget included a significant $200m funding injection for distributed solar projects. The City should also explore public-private partnerships.

• Support the Workforce Behind the Transition. The clean energy industry presents an opportunity for economic growth and job creation. Measures such as streamlined permitting and development at municipal assets will create a predictable job engine that generates good, middle-class careers in an increasingly in-demand industry.

To read the report, Meeting New York City's Energy Demand Challenge, click here: https://comptroller.nyc.gov/reports/meeting-new-york-citys-energy-demand-challenge