What's Delaying the Completion of Energy Projects in New York?
What's Delaying the Completion of Energy Projects in New York?
June 29, 2026
New York urgently needs new generation to meet rising demand. While the NYISO has made progress in streamlining its interconnection process, data shows that clearing interconnection studies does not guarantee projects move forward to construction.
Since 2019, more than 100 projects representing more than 14,000 MW of clean energy supply have completed the NYISO’s interconnection process. Of those approved projects, 14, accounting for 4,561 MW of capacity, are in active construction, reflecting the reality that many of the most significant challenges facing developers arise after interconnection requirements have already been resolved.
Interconnection studies evaluate how new resources interact with the transmission system during peak demand and other stressed operating scenarios. The NYISO has recently streamlined its interconnection process, updating the interconnection portal, improving the application process and launching an enhanced “cluster study” framework that evaluates projects in groups to improve efficiency and transparency for all parties involved.
Reaching an executed interconnection agreement is a critical milestone that establishes how a project can reliably and safely connect to the bulk power system, including what system upgrades are required, how costs are allocated, and how the resource is expected to perform under a range of system conditions. As developers advance projects through the NYISO’s interconnection process, they must also pursue project permits, financing, and negotiate arrangements for the equipment and labor necessary to build and operate projects. Recent experience shows that many of these factors outside of the scope of the interconnection process are ultimately dictating when or whether projects get built.
Developers must also navigate challenges associated with supply chain disruptions, access to project capital, and economic forces that can drive up the costs and extend development timelines.
State agencies are taking note of these challenges. In recent Clean Energy Standard (CES) Annual Progress Reports, the New York State Energy Research and Development Authority (NYSERDA) has noted that inflationary pressures, global supply-chain disruptions, elevated interest rates, permitting timelines, and transmission availability have contributed to slower-than-anticipated progress in advancing contracted renewable energy projects into construction.
Similar state reviews recognize that while interconnection is an essential prerequisite, delays are increasingly driven by forces outside of the interconnection process, particularly during later development and construction phases.
Rising tension between state and federal energy and environmental policies is adding further uncertainty for developers. Changes to federal trade policy, tax incentives, and regulatory frameworks are influencing equipment procurement, project economics, and long-term investment decisions. These cross-currents introduce additional risk when projects are already navigating complex permitting, financing, and construction challenges, increasing the likelihood of delay even after interconnection milestones have been reached.
While interconnection constraints are often cited as a cause of project delays, the number of approved but unbuilt projects suggests that other factors play a significant role. Addressing these broader challenges will be essential to advancing new generation in New York.
