Reliability Before Retirement: Build the Energy Foundation for New York’s Manufacturing Future
Randy Wolken, President & CEO

New York stands at one of the most significant manufacturing moments in its modern history. Semiconductor fabrication, defense electronics, battery technologies, advanced materials, biologics, aerospace, and many other advanced manufacturing industries are creating unprecedented economic opportunity. Micron’s historic investment in Central New York symbolizes this new era, but it’s only one example. Across the state, manufacturers are expanding, modernizing, and positioning themselves for industries that will define the next generation of the American economy.

Yet one question increasingly determines whether these investments will succeed: Will New York have the reliable energy infrastructure necessary to support them?

Recent New York Independent System Operator (NYISO) Energy Watch reports offer a clear reminder that grid reliability can’t only be judged by whether the lights stay on. During the June 2024 heat event, NYISO issued multiple Energy Alerts and Watches as peak demand pushed the system toward its limits. Operating reserves tightened significantly during late-afternoon peaks, when air conditioning and industrial demand coincided. In several instances, reserves fell below typical comfort thresholds, requiring close operator management and dispatch of all available resources. While the system remained stable, NYISO described conditions as “elevated,” underscoring the strain on reserve margins and dispatchable generation.

The system’s ability to withstand recent extreme heat is encouraging. However, repeated Energy Watches during peak summer conditions point to a structural reality: operating reserves are becoming increasingly thin when the grid is most stressed. Manufacturers understand that resilience isn’t proven during a crisis; it’s built well before one occurs.

For advanced manufacturers, electricity is no longer just an operating cost. It’s a core competitive asset. Modern facilities rely on uninterrupted power for automation, robotics, cleanrooms, precision machining, data systems, and increasingly advanced AI applications. Even brief outages can cause lost production, damaged materials, delayed shipments, and significant financial losses.

As New York competes for semiconductor fabs, supplier ecosystems, and advanced manufacturing operations, reliable electricity becomes a prerequisite for investment. Companies committing billions of dollars ask basic but decisive questions: “Is sufficient power available?” “Will it remain reliable during peak demand?” “Can infrastructure scale with future growth?” These considerations weigh as heavily as tax policy, workforce availability, or incentives.

This is why New York should adopt a straightforward principle:

Reliability must precede retirement.

The state’s clean energy transition is proceeding, but the pace of retiring dependable generation must align with the proven performance of replacement resources. Planned capacity isn’t dependable capacity. Projects under construction aren’t equivalent to assets that have demonstrated performance through multiple peak seasons. The grid requires more than annual energy supply; it depends on fast-ramping generation, voltage support, frequency regulation, and operating reserves that maintain stability during unexpected events.

These realities point to three practical policy principles:

First, new resources should be fully operational before dependable resources retire. Every generating asset provides distinct reliability services. Replacement resources should demonstrate equivalent performance before existing units are removed.

Second, reliability must be proven under real operating conditions. New infrastructure should demonstrate performance during extreme weather, high demand, and equipment contingencies before it’s relied upon as a core system resource. Manufacturers validate equipment before retiring legacy systems; the grid should follow the same discipline.

Third, major new electric loads must be matched with credible infrastructure plans. Semiconductor fabs and advanced manufacturing facilities require substantial power. These investments should proceed alongside corresponding investments in generation, transmission, substations, transformers, and related infrastructure so that growth strengthens – not strains – the system.

These principles are requirements for successful manufacturing investment and economic development.

New York has already proven it can attract world-class manufacturing investment. The next challenge is sustaining that investment over decades. Manufacturers base decisions not only on current conditions, but on confidence that future operating environments will remain reliable and competitive.

For MACNY members, this issue extends well beyond electricity. Power reliability affects insurance costs, continuity planning, supplier confidence, production scheduling, automation investments, and expansion decisions. It influences whether companies grow in New York or elsewhere. Grid reliability is a core manufacturing competitiveness issue.

Fortunately, New York has the expertise and industrial base to meet this challenge. The state can expand renewable energy while maintaining dependable generation. It can strengthen transmission while improving local reliability. It can welcome new industrial investment while ensuring infrastructure keeps pace with demand.

The choice isn’t between growth and reliability. It’s recognizing that growth depends on reliability.

If New York intends to lead in advanced manufacturing, it must ensure that companies never question whether the power they need will be there when they need it.

Reliable energy isn’t just another utility service. It’s the foundation of New York’s manufacturing future.