(Reuters) - New York City could experience a 446 megawatt power supply shortfall starting summer 2025, fueled by forecasts of increasing peak demand levels and the unavailability of some generators, the state's power grid operator said on Friday.
Increased electrification of the transportation and building sectors, post-pandemic economic growth and the unavailability or retirement of some generators under new emission norms effective in May could fuel this supply deficit, the New York Independent System Operator (NYISO) said in its quarterly assessment.
One megawatt can power around 1,000 U.S. homes on a typical day.
"The NYISO will begin the process immediately by working with the local utility and the marketplace to identify and evaluate possible solutions," the NYISO said in a release.
But the NYISO's Short-Term Assessment of Reliability (STAR) report also forecast completing the Champlain Hudson (NYSE:HUD) Power Express (CHPE) transmission line from Quebec to New York City could improve New York City’s grid conditions beyond 2025.
The 339-mile CPHE, expected to power over one million homes, was expected to be fully operational in the spring of 2026, the New York State Public Service Commission (NYPSC) said in May.
A delay in the CPHE's schedule can lead to additional transmission security concerns, the STAR report added.