Funds Available to Strengthen & Modernize NY's Electric Grid

Governor Kathy Hochul today announced $22 million is now available for projects that strengthen and modernize New York’s electric grid. Funded by a U.S. Department of Energy’s (DOE) Grid Resilience Formula Grant, the State’s new competitive grid modernization program supports projects that help to ensure the reliability of infrastructure and expand access to clean energy for New Yorkers, supporting the transition to a zero-emission electricity system. Additionally, the Governor also announced that in October, New York State was awarded an additional $11.5 million under the federal formula grant program to supplement this initial phase of funding.

“New York’s grid infrastructure is the backbone of energy distribution and we must maintain its reliability and resiliency to withstand extreme weather events,” Governor Hochul said. “This federal formula grant complements ongoing State investments to meet the growing energy needs of families and businesses in our communities.”

The new grid modernization program, administered by the New York State Energy Research and Development Authority (NYSERDA), provides funding to municipal utilities, rural cooperatives, or consortiums that apply on their behalf, and small electricity providers that sell no more than 4,000,000 megawatt hours (MWh) of electricity per year for projects that strengthen the capacity of New York State’s grid systems to prepare for future extreme weather events. Proposals must meet all federal requirements, including at least a one-third cost share, and include direct and quantifiable energy, environmental, and economic benefits to New York State such as emissions reductions, job creation, product manufacturing and sales, energy efficiency, or reduced electric costs for proposed site locations.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “NYSERDA is pleased to offer this new grid modernization program with funding from the U.S. Department of Energy to municipal electric systems and rural cooperatives interested in advancing projects that strengthen and enhance grid resiliency. We look forward to working with future partners to deliver projects that help provide clean energy to New Yorkers and support the State’s transition to a modern, zero-emission electric grid.”

Eligible project types will advance modern, resilient grid technologies that can withstand extreme weather events and include:

• Adaptive protection, advanced modeling, and monitoring control technologies.
• Installing advanced conductors, including low sag advanced conductors, or replacing old overhead conductors and underground cables.
• Using or constructing distributed energy resources (DER) to enhance adaptive capacity during a disruptive event.
• Weatherization technologies and equipment.

Proposers must select one project type per application. Proposals will be accepted through 3 p.m. on February 12, 2025. More information about this solicitation is available on NYSERDA’s website.

NYSERDA also offers $3.5 million in technical assistance to support the development of grid modernization proposals for this solicitation. The technical assistance is available on a first come, first served basis for a one-time maximum award of up to $200,000 per applicant. It can be used to support the technical analyses needed to evaluate potential projects, grant writing assistance for implementation funding, and development of a metrics reporting system to evaluate project success.

Building on the funding awarded last year, New York was recently awarded an additional $11.5 million in grant funding that is expected to become available to municipal electric systems and rural cooperatives in the summer of 2025. New York is one of nine states and five tribal nations that were awarded a combined total of $125 million as the seventh cohort of Grid Resilience State and Tribal Formula Grants and will provide 15 percent matching funds through the Regional Greenhouse Gas Initiative as part of DOE's grant requirements. To learn more, visit NYSERDA’s website and DOE’s Grid Deployment Office’s website.

U.S. Department of Energy Grid Deployment Office Director Maria Robinson said, “The Biden-Harris and the Bipartisan Infrastructure Law provides more than $30 billion for the largest electric grid infrastructure investment in history, and DOE has distributed more than $1.3 billion to date through the Department of Energy’s Grid Resilience Formula Grants to states, tribes, territories, utilities, and industry. We’re proud to work with states like New York and support them in meeting their clean energy goals. In addition to providing reliable and affordable energy for consumers, initiatives like NYSERDA’s grid modernization program are also creating good-paying jobs and providing economic and community benefits to the surrounding areas.”

New York State Public Service Commission Chair Rory M. Christian said, “This federal funding to assist municipal electric systems and rural cooperatives will help strengthen and enhance grid resiliency in New York State. Kudos to Governor Hochul for putting together a team to help New York transition to clean-energy electric grid.”

New York Association of Public Power President David Leathers said, “The grid resilience grant opportunities represent a very significant contribution towards enhancing electric system reliability and driving infrastructure improvements for our customers and members. The consumer-owned municipal and rural electric cooperative utility systems in New York certainly appreciate the important partnership we have with NYSERDA.”

Municipal Electric Utilities Association of NYS Executive Director Jim Stokes said, “The funding provided by this program serves a critical need as our municipal utilities work to modernize aging infrastructure in manner that minimizes the financial impact on our customers. We appreciate Governor Hochul and NYSERDA's commitment to addressing this need.”

Funded through the Bipartisan Infrastructure Law and administered by DOE’s Grid Deployment Office, the Grid Resilience State and Tribal Formula Grants distribute funding to states, territories, and federally recognized Indian Tribes, including Alaska Native Regional Corporations and Alaska Native Village Corporations, over five years based on a formula that includes factors such as population size, land area, probability and severity of disruptive events, and a locality’s historical expenditures on mitigation efforts. Priority is given to projects that generate the greatest community benefit providing clean, affordable, and reliable energy. As of October 25, 2024, DOE has awarded nearly $1.3 billion in Grid Resilience State and Tribal formula grants throughout the country.

New York State's Climate Agenda

New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.