Iberdrola to Invest Billions in New York’s Renewable Energy Networks

Iberdrola, through its subsidiary Avangrid, is preparing to carry out a powerful investment to modernize the electrical networks of the state of New York and facilitate a greater integration of renewable energies.

The company has already received the go-ahead from the Public Services Commission of this state to launch a project that It will consist of two phases and will mean allocating 3,663 million dollars (3,315 million euros) to reinforce the power lines in the area and accommodate -only in the area of ​​the electricity company- close to 4,252 MW of new clean energy.

In the first phase of the project, Avangrid has 13 investments that the company has budgeted at 1,413 million dollars (1,278 million euros) in the areas of Lockport, Lancaster, Ithaca, Oneonta and Binghamton.

According to the company’s calculations, these improvements, which will come into service from 2026 to 2030, will allow a integration of 2,252 MW of renewables into the New York electricity system in the first phase.

Likewise, on February 16, the NYPSC also issued an order to authorize the so-called Phase 2, which will consist of adding a total of 62 improvements to the transmission networks to support new sources of renewable generation in accordance with the application of the Growth Law. Accelerated Renewable and Community Benefit.

The New York Public Services Commission has authorized a total investment of 4,400 million that will allow the integration of another 3,500 MW of renewables, which will facilitate access to energy equivalent to the consumption of 2.8 million households.

The company will reinforce the lines to be able to incorporate 4,252 MW of new renewables

Iberdrola, through its subsidiaries NYSEG and RG&E, has received the go-ahead in this second phase for an investment of 2,250 million dollars (2,036 million euros), that is, more than half of the budget for this development, which also includes to companies such as National Grid or Central Hudson Gas & Electric Corporation (Fortis Company).

The measure will allow the company, among other things, the installation of 1.9 million digital meters, in addition to other actions in the company’s substation network. The Accelerated Renewable Growth and Community Benefit Act requires that 70% of New York State’s electricity comes from renewable energy sources by 2030 and emission-free energy by 2040. Along with other objectives, the CLCPA targets the construction of 9 GW of offshore wind capacity.

New York will invest more than $35 billion in clean energy in 120 large-scale transmission and renewable projects with the goal of facilitating lower bills for customers.

Bet on the networks

Iberdrola is thus increasing its level of investment in the regulated network business. The company, which recently signed an agreement with Singapore’s sovereign wealth fund, GIC, to grow in Brazil, is also advancing on the interconnection project with Canada.

The courts once again sided with Iberdrola this past week and may continue with the construction of its power line between the United States and Canada, New England Clean Energy Connect (NECEC). The Portland Business and Consumer Court has ruled, after two weeks of trial, in favor of the electric company.

The investment in New York is also one of the key points since the New Mexico Commission used to charge against the Spanish electricity company in its project to purchase PNM Resources the sanctions that the company had received for some problems in the power lines.

The electricity company has been gradually clearing up the points that the regulators commission questioned in its day and is awaiting the decision of the Court to be able to reapply for the only authorization that it lacks to close the purchase of the company valued at 7 billion euros.

Investment in New York networks occurs in addition at the gates of the visit of the President of the Government, Pedro Sánchez, to the White House on May 12 and in the midst of a strong existing dispute over the claims that various investment funds have filed in the country due to the arbitrations that Spain has lost due to the cuts in renewables and that put several sovereign debt issues in check.

Longer term for the purchase of PNMR

Iberdrola is willing to close the purchase operation of PNM Resources to create a giant valued at more than 40,000 million in the United States. The Spanish company, through its subsidiary Avangrid, has reached an agreement with the American company to extend the deadline to buy the company to July 20. The NRC had granted the subsidiary of the Spanish company an extension until May 25 and has once again extended the term to facilitate the purchase operation of the New Mexico electricity company.