Clean Energy Supply Chain Analysis and Economic Development Opportunities in New York State

Allegheny Science & Technology (AST), for NYSERDA

Under the backdrop of the Climate Leadership and Community Protection Act (Climate Act), New York State has established some of the most aggressive climate goals in the U.S., with a 40% reduction in greenhouse gas emissions by 2030, a decarbonized electricity system by 2040, and an 85% greenhouse gas reduction target (relative to 1990 levels) by 2050. This transition must also be carried out equitably and in ways that benefit disadvantaged communities. New York is developing an actionable strategy to meet these decarbonization goals, which requires a comprehensive understanding of the energy landscape and emerging clean energy technologies that will have the greatest impact on reaching the climate goals while supporting the state’s economy over the long term, as well as a thorough understanding of the energy supply chain for these clean energy technologies, many of which are still pre-commercial or new to the marketplace.

Through this project, NYSERDA sought to assess New York’s potential to support the supply chains for a range of clean energy technologies, including electric vehicles, non-residential clean heat and cooling, and offshore wind, identified as “high priority” technologies. The primary objective was to identify elements of clean energy technology supply chains that offer high-growth business opportunities for the state and thus warrant increased policy attention and investment, with additional focus on how they can benefit disadvantaged communities.

The project began with a high-level assessment and ranking of the high-priority technologies and other clean energy technologies identified as having high potential to provide economic development opportunities in New York. Based on this ranking, a framework was developed and applied to conduct in-depth analyses of three NYSERDA priority technologies and two additional top-ranked technologies, including technology sub-component analysis, JEDI/IMPLAN economic modeling, identification of New York market barriers to clean energy technology business development, determination of supply chain elements with the highest potential for growth in New York, a listing of proven policy and incentive programs for supporting existing and new clean energy technology businesses, and an evaluation of supply chain growth areas benefiting disadvantaged communities in the state. The project comprised a project management task and thirteen separate technical tasks generating eighteen deliverables.