New York is the second smallest competitive market in the US, with most of its load concentrated in the south around New York City. Most generation is located upstate and includes a mix of natural gas, nuclear and hydro which makes up ~15-20% of generation. The state has a target of supplying 50% of generation from renewables by 2030.
How is the market structured?
New York is structured as a competitive wholesale market with energy transacted on a day-ahead and real-time (5 minute) basis. Capacity is sold up to 6 months in advance in auctions. New York also operates several markets for ancillary services.
What are the geographic boundaries of the market?
NYISO covers the state of New York and is interconnected with Ontario and Quebec to the north, ISO-NE to the east, and PJM to the south and west.
What are the relevant price and delivery zones?
The main pricing hubs in New York are Zona A (located in the west) and Zone J (New York City). Nodal pricing exists throughout New York with pricing varying with local supply/demand conditions as well as transmission considerations more generally. Nodal pricing is aggregated to calculate energy prices for 11 separate energy zones, as well as the energy price at interconnection points with neighboring regions.
Can I buy long-term power in the traded markets?
Buyers and sellers can hedge their exposure in the forward market within a ~5 year window via over the counter trading platforms.
Who do I need to contract with to buy power?
Many consumers receive power from their local utility (the utility covering the geographic area in which the load is located). Consumers can also opt to buy power directly from a generator, or through a retailer (in states where competitive retail markets exist) though the utility will continue to charge certain fees (i.e. transmission/distribution/other system fees).
New York currently offers retail choice.
How are system costs and other social charges levied?
In general, a bill can be broken into three components: generation, transmission and distribution. Generation costs are broadly correlated with wholesale energy prices, transmission costs are socialized across all consumers, and distribution costs vary based on the local cost of each utility. Other system and social charges (such as to support energy efficiency programs) are generally socialized across consumers and are also reflected on the bill from the local utility.
How do I prove I've bought renewable power?
In the US, renewable generation is certified and tracked using RECs (Renewable Energy Certificates). One REC is issued for every MWh of eligible renewable energy that is delivered to the electric grid. A REC contains unique identifying details of the energy generated, including the renewable fuel type, project name and location, the vintage of the project and the generation, and serial number.
Within New York, the Generation Attribute Tracking System (NYGATS) is used to track generation ownership and attributes, including RECs.
How are RECs (Renewable Energy Certificates) procured? Centralized procurement by the New York State Energy Research & Development Authority (NYSERDA) or through voluntary programs.
Are renewable Power Purchase Agreements (PPAs) available? Yes
Are Green Tariffs available? No
What are the key institutions?
Key Government Departments:
- The New York State Energy Research & Development Authority (NYSERDA) promotes energy efficiency and use of renewables.
- The New York Department of Public Service regulates and oversees electricity industry within the state.
- The Federal Energy Regulatory Commission (FERC) is the federal agency that regulates the transmission and wholesale sales of electricity in interstate commerce.
- The North American Electric Reliability Corporation (NERC) is a not-for-profit international regulatory authority whose mission is to assure the reliability and security of the bulk power system in North America.
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