Energy Equity in New York
by Sonam Velani and Kathy Zhang Recently, NY state put forth an ambitious plan to achieve 100% zero-emissions electricity by 2040, with at least 35 percent of the benefits of clean energy investments directed towards disadvantaged communities. What could a more equitable, clean energy system look like in NYC?
Energy equity is about providing affordable, reliable and efficient energy for all, in a way that includes the local community in the transition and benefits. This week, we’re focusing on some promising policy and community initiatives advancing energy equity.
Rising temperatures – and prices
Like the costs of other essentials like food and housing, utilities prices are also increasing. Minorities and older residents face a much higher energy burden–the share of household income spent on energy costs. In 2022, more than 1.2 million (one in eight) New Yorkers fell behind on their utilities bills. In the same year, NY announced the largest financial assistance program for utilities in its history, helping to administer $672 million to over 500,000 NY homes and small businesses.
Electricity prices are increasing across the US, with the sharpest increase in New England driven in part by high regional natural gas prices. (Source: EIA)
In recent years, states like California have been piloting percentage-of-income payment plans (PIPPs), in which utilities companies provide tiered, income-based plans. Bill assistance and PIPPs are useful measures, particularly when used with other tools to tackle the larger structural challenges in energy equity.
A full(er) picture
The US Department of Energy (DoE) has put forth a beta “Energy Justice Dashboard” which layers DoE investments over environmental and demographic indicators from the EPA’s EJScreen and measures of energy burden from DoE’s Low-Income Energy Affordability Data (LEAD).
Overview of NYC area’s Energy Justice Dashboard via DoE
Local initiatives expanding access to clean energy
Major investment in Distributed Solar. Building upon the success of the NYSERDA’s NY-Sun program, NY’s Public Service Commission approved NYSERDA’s Distributed Solar Roadmap with over $1B in new incentives. With Distributed solar, power infrastructure is installed directly at the site of electricity consumption, reducing transmission losses and reliance on the grid, typically at a lower cost.
Financing building electrification. New York City’s Mayor’s Office of Climate and Environmental Justice, in partnership with the New York City Energy Efficiency Corporation (NYCEEC), offers favorable loans for renewable energy upgrades for building owners.
Offshore Wind Ecosystem Fund. Equinor, a Norwegian energy company, has partnered with NYCEDC to establish a $5 million fund to support workforce development and business opportunities among marginalized communities in the development of NY offshore wind farms.
Additional resources to check out:
by Sonam Velani and Kathy Zhang