Using Market Forces to Support Tx Investment Mar 8, 2021

March 8, 2021
John Dalton

The figure below shows the various New York State transmission projects that are being developed to respond to NYSERDA’s Tier 4 RFP. The Tier 4 RFP requires that qualifying RECs, which include incremental hydro at existing dams, be generated in or delivered to NYISO’s Zone J (NYC),with delivery occurring over new transmission facilities. When the Tier 4 concept was originally announced there were only a few eligible transmission projects. See what the prospect of a 25-year contract has engendered. There are now at least 8 Tier 4 transmission projects (1 not shown given not publicly released) competing for Tier 4 contracts with NYSERDA. It will be interesting to see under what terms these projects are offered given the various project risks that need to be priced.