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PA energy and utilities expert, David Cherney, is quoted in Power Finance & Risk sharing his perspective on the planned closure of Indian Point and how it may affect New York's renewable energy objectives.
The announcement by Entergy Corp. of its planned closure of the Indian Point nuclear facility in New York State heralds the end of its merchant generation business, but may present an opportunity for other independent power producers and developers in New York ISO.
The Indian Point Energy Center, comprising two units totaling 2,069 MW in Buchanan, is scheduled to close completely by 2021, primarily because the low cost of power makes the plant economically unviable, according to Entergy.
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Commenting on the topic, David Cherney says: "Despite New York’s renewable energy objectives, it is likely that the majority of Indian Point’s capacity will be replaced by new natural gas-fired generation in the near-term, which is currently more economical to meet system needs than comparable renewable or transmission solutions."
Cherney added: "However, over the long-term, the loss of Indian Point’s carbon free generation will require significant amounts of renewable generation to meet New York State’s goal of a 40 percent reduction in greenhouse gas emissions by 2020."