LIPA addresses power deficiency with retrofits and contracts
LIPA has addressed a short-term power deficiency on Long Island by retrofitting power plants and extending cable contracts. However, a significant power shortfall is projected by the middle of the next decade, partly due to anticipated demand from new data centers once a state moratorium expires. This situation is intensifying calls to repower older plants, despite substantial costs and equipment availability challenges.
The Long Island Power Authority (LIPA) has taken short-term measures to mitigate a power capacity deficiency, including retrofitting three small power plants in Shoreham and Glenwood Landing with water injection technology to meet state emissions standards. Additionally, LIPA secured a new contract for 345 megawatts (MW) from the Cross Sound Cable and extended an agreement with Neptune cable owners for over 600 MW through 2030, a decision LIPA later challenged in a federal complaint over a 50% cost increase.
These actions address a projected 254 MW capacity shortfall by 2030, ensuring sufficient power for peak summer demand. However, a larger, long-term deficiency of up to 500 MW is anticipated by the mid-2030s. PSEG Long Island, writing on LIPA's behalf, cited uncertainties regarding load forecasts, project timelines, aging generation reliability, and evolving regulations. National Grid Ventures, which owns Long Island's fossil-fuel plants, advocates for repowering the largest plants now, citing a growing backlog for power plant equipment due partly to high demand from data centers.
The expiration of a state data center moratorium next year is seen as a "wild card," potentially introducing new large electric-demand customers, such as a proposed 176 MW data center project in Yaphank. LIPA and PSEG are currently conducting a yearlong study on the Island's power needs. Concerns about the Propel NY Energy transmission project, a partnership between National Grid and NY Transco, have also been raised by local entities like the Village of Sea Cliff, which questions the project's necessity in light of plant retrofits and repowering options.