Three years after the banking crisis and recession hit the U.S. economy, slowing investment in power resources, firms in New York, New Jersey and Connecticut are trying to reenergize the sector and address future demand that will grow as the economy improves. Experts note that the pace of economic recovery will impact the sector’s ability to deal with numerous pressing issues such as meeting renewable energy goals, integrating renewable power into the grid, transmission congestion and smart grid technologies.
The New York Independent System Operator, a nonprofit company that focuses on electricity reliability, released a needs assessment report in 2010 regarding New York City’s generation needs. The report found that the city would not require any new powerplants until 2019, given current capacity. While sufficient generation capacity is not a near-term worry, the long time frames for siting new power projects, obtaining regulatory approval, securing power purchase agreements and arranging financing are a concern.