On July 23, 2025, the New York State Energy Planning Board (the Board) voted to release its Draft Energy Plan (Draft Plan) for public comment, which both assesses the state’s current and future energy needs as well as provides a roadmap to pursue clean energy-goals. The Board is comprised of multiple state agency heads, such as the secretary of State, Chair of the Public Service Commission and Chair of the New York State Energy Research and Development Authority, among others; appointees of the Governor, Temporary President of the Senate, and Speaker of the Assembly; as well as the President and CEO of the New York Independent System Operator, as presiding officer of New York State’s bulk system operator. The Draft Plan is designed to guide energy-related program and policy development across all sectors of the state’s economy, continue the transition to a cleaner energy system, and assist New Yorkers in managing their energy costs while enjoying the benefits of clean energy.
Under Article 6 of the Energy Law, the state’s energy plan must include an assessment of the ability of energy supply sources as well as transmission and delivery systems to meet forecasted energy demand for at least a 10-year period; in the Draft Plan, the Board evaluated demand and supply through 2040—notably, the same year as the Climate Leadership and Community Protection Act (CLCPA) deadline for decarbonization of the state’s electrical grid.
While the Draft Plan highlights the progress New York State has made toward a clean-energy economy, such as the proliferation of distributed solar, solicitation of offshore wind development, and the recently enacted billion-dollar Sustainable Future Program, the Draft Plan also acknowledges the state’s continued reliance on fossil fuels across a variety of sectors of the economy, notably power generation and transportation. The Draft Plan also contains the caveat that its underlying analyses were completed in June 2025 based on assumptions set in March 2025; as such, the Draft Plan does not reflect recent federal and state policy changes, such as changes to federal tax law or the Public Service Commission’s determination to withdraw its finding as to a New York City Public Policy Transmission Need. These and other policy changes will have to be addressed as the Draft Plan is finalized. Notwithstanding, generally, the Draft Plan emphasizes reliability and affordability over attainment of the targets set out in the CLCPA (zero-emission electricity system by 2040, 70 percent renewable electricity generation by 2030, 9,000 megawatts (MW) of offshore wind by 2035, 3,000 MW of energy storage by 2030, and 6,000 MW of solar by 2025), with the Board acknowledging that economic pressures and shifting political priorities and policies at the federal level create significant uncertainties that impact long-term planning and investment, and in turn the pace of decarbonization. Instead, the Draft Plan focuses on broader long-term emissions reduction and decarbonization goals, recognizing a role for fossil fuels in the near-term to maintain system reliability and energy affordability.
The Draft Plan makes a number of findings, most notably:
- New York State must be prepared to meet forecasted growth in electricity demand, inclusive of anticipated large loads driven by the development of semiconductor manufacturing and data centers. The 2025 Gold Book indicates such large-load facilities can contribute up to 19,200 gigawatt-hours of additional annual consumption by 2035.
- New York State can continue to decarbonize while meeting anticipated demand growth and ensuring system reliability through strategic investment throughout the planning period. However, the Draft Plan recognizes that all major fuels used today will continue to contribute to meeting system reliability need, with the Draft Plan calling for careful management of the pace of combustion unit retirements.
- In light of federal policy changes, the Draft Plan directs continued consideration of generation and transmission planning and development to meet demand and reliability needs and to continue to drive the transition to clean energy while leveraging these technologies to benefit disadvantaged communities.
- Nuclear will continue to fit into the state’s future energy mix, with the Draft Plan proposing to evaluate the continued support of the state’s existing plants through the Zero Emission Credits program beyond its planned expiration in 2029. The Draft Plan also contemplates that nuclear can support the production of clean hydrogen and that multi-state collaboration can facilitate shared advanced nuclear development and deployment, in support of and in addition to the New York Power Authority–led effort to develop and construct at least one gigawatt of nuclear generating capacity, previously directed by Governor Hochul on June 23, 2025.
The Draft Plan ultimately sets forth numerous objectives, strategies, and recommended actions in eight general areas:
- Responsibly advancing clean and reliable energy resources
- Modernizing energy-system infrastructure planning and markets
- Delivering abundant energy services for economic competitiveness
- Supporting equitable participation in the clean-energy transition
- Expanding access to clean transportation options and livable communities
- Expanding access to healthy, efficient, and low-emissions homes and buildings
- Growing clean-energy jobs
- Growing innovation in the clean-energy economy
When the Board released the Draft Plan, it announced a public hearing schedule where oral comments on the Draft Plan will be heard. Seven hearings will be held in person across the state during August and September 2025, bookended by two virtual hearings. The full schedule is accessible here. Written comments will also be accepted through October 6, 2025. Thereafter, the Board will evaluate the public input received and finalize the plan, with a final plan anticipated to be issued by the end of 2025.
If you have any questions regarding the content of this alert, please contact Brenda Colella, Regulatory Practice Group leader, at bcolella@barclaydamon.com; David Solimeno, associate, at dsolimeno@barclaydamon.com; or another member of the firm’s Regulatory or Energy Practice Areas.