The New York Power Authority plans to buy a New York City site where a power plant once stood and reuse it for clean energy infrastructure.
The state-owned entity is working to expand its generation and transmission portfolio as part of New York’s long-term efforts to generate more electricity with less carbon emissions.
The 15.7-acre site in Astoria, near the waterfront in the northwest corner of Queens, could support that initiative: It is adjacent to existing NYPA assets, zoned for utility infrastructure and situated within a load pocket.
NYPA’s Board of Trustees in late March approved its purchase for $206 million; the deal is expected to close in June.
The recent history of the site reflects the changing nature of New York’s power portfolio.
A subsidiary of NRG Energy sought to refurbish its aging 558-MW peaker plant with a new 437-MW turbine but was denied permission by state regulators, who determined the move would not comply with greenhouse gas emission limits. (See New York Regulators Deny Astoria, Danskammer Gas Projects’ Air Permits.)
So instead, NRG decided to demolish it and sell the land to an entity created by bp and Equinor. (See NRG to Demolish Astoria Plant, Sell Site to OSW Firm.) They planned to build the Astoria Gateway for Renewable Energy there, as a landing site for electricity from their Beacon Wind project.
But Beacon Wind ran into economic trouble in 2023 and canceled its New York offtake contract. Equinor and bp dissolved their partnership, with bp taking full ownership of the Astoria site.
More recently, bp withdrew its request for state authorization of the Beacon Wind export cable. A spokesperson noted that New York now is considering coordinated offshore transmission for multiple projects, an approach the company supports. (See Beacon Wind Withdraws Export Cable Request.)
The sale of the Astoria site is conditioned on the Public Service Commission declaring it is not subject to review under Public Service Law. A petition to that effect was submitted March 20 (Case 25-E-0192).
NYPA did not indicate a specific plan or intended use for the site, only that it would be used for future energy system enhancements and energy infrastructure to support integration of clean energy in New York City, where NYPA now operates multiple fossil fuel-fired plants — including in Astoria.
The same legislation that expanded NYPA’s authority to develop renewables also mandated that it stop using fossil fuels to run its peaker plants by 2030.
“Acquiring this land adjacent to our existing Astoria energy complex is yet another step forward to support New York’s clean energy future,” NYPA Chair John Koelmel said in a press release. “This strategic investment enables the Power Authority to explore options for reliable, sustainable energy infrastructure that aligns with the state’s ambitious decarbonization goals while also ensuring resiliency of the state power grid.”
New York City is heavily reliant on fossil-fired generation even as a large percentage of upstate New York’s power comes from emissions-free sources. Emissions from power plants and vehicles in high-traffic areas degrade the air quality significantly in some city neighborhoods: Astoria and adjoining areas are known as “Asthma Alley,” for example.
As a result, even incremental steps toward decarbonization of the city’s grid are celebrated by neighborhood leaders such as state Rep. Jessica Gonzalez-Rojas, whose district includes the Astoria site.
“Acquiring this land in Astoria is a significant achievement and a major step toward New York’s ambitious — but achievable — environmental goals,” she said in NYPA’s release. “Transforming a former fossil fuel site into a space for sustainable energy is especially redemptive for the Queens communities, which have long faced some of the highest rates of pollution-related illnesses.”
