New York State is making a $5 billion bet that by making its power cleaner, it can become a magnet for the clean energy jobs of the future.
Its efforts stand out among the many states racing to integrate more renewables into their power grids—such as Massachusetts, Hawaii and California—not necessarily for the technology but because of what’s happening behind the scenes: New York has launched a Herculean effort to turn around an antiquated system that has deterred innovation for generations by rewarding utilities for selling more electricity.
To get utilities to embrace a changing electricity system, the state is establishing ways for the companies to be reimbursed for some of the savings from energy efficiency programs that are reducing demand for their services. It also is allowing them to reap more return on their investments in equipment needed to bring more renewable energy into the grid. And it is investing in entrepreneurs who are inventing the technology to make it all work.
The state is so gung-ho that its rules require utilities to come up with demonstration projects that test out a new business model, in partnership with at least one private sector company.
The result, say the state’s regulators, is that New York is already attracting hundreds of innovative companies of all stripes. The plum opportunities are not only in installing wind turbines and solar panels, which are generating new employment opportunities across the country, they are also in emerging technologies related to smart grid management and storage. These jobs are largely invisible to the public and, in some cases, didn’t even exist a few years ago.
While the state hasn’t yet projected overall how many jobs are in the new energy economy, they have released enticing tidbits. In January, the New York State Energy and Research Development Authority (NYSERDA) released a report projecting that by 2030, New York’s energy storage industry could realize annual revenues between $5.6 billion…