The New York Power Authority (NYPA) has approved a new round of economic development awards, generating nearly $395 million in capital investment across the state. The awards will support 616 jobs, 55 of which are newly created positions, and include a mix of power allocations and funding.
NYPA awards spur economic development by providing low-cost energy options or direct funding for projects and programs throughout the state, according to officials. The authority leverages its renewable hydroelectric power generation facilities to accomplish this.
The awards are split among four main funding or power allocation programs: ReCharge NY, Western New York Power Proceeds, Industrial Economic Development and High Load Factor Power.
The ReCharge NY program allocates low-cost, subsidized electricity to New York firms. The recent announcement includes more than 2,300 kilowatts given to nine companies across multiple regions and has attracted nearly $35 million in private capital investment. Notable recipients include Briggs & Stratton in Madison County, International Paper Company in Broome County and Supreme Screw Products on Long Island.
Companies receiving subsidized power from ReCharge NY can enter contracts lasting up to seven years with below-market rates. Half the electricity available to the program comes from the Niagara and St. Lawrence hydroelectric plants operated by NYPA, with the other half purchased from wholesale markets.
Taking a different approach from the other programs, the Western New York Power Proceeds program operates by awarding direct funds rather than subsidized energy. The proceeds program awarded more than $1.5 million to two recipients in the current round.
The Aquarium of Niagara received more than $194,000 to upgrade its boiler system to a high-efficiency HVAC system, improving energy efficiency and reliability. A startup specializing in solid-state battery technology received more than $1.3 million. The funds support a larger $9.1 million project to develop and construct a global manufacturing headquarters in Erie County.
Under a third program, the Industrial Economic Development Program allocated 100 kilowatts of hydropower to the Village of Angelica in Allegany County. This will support expansion, looking to extend its operational life by 25 to 30 years while adding new equipment.
Under the final program, High Load Factor Power, NYPA approved 15,000 kilowatts for the Empire AI Consortium. Unlike the subsidized programs, this one uses NYPA’s purchasing power to buy electricity at market rates for high-demand operations.
The Empire AI Consortium is a public-private partnership (P3) backed by more than $500 million in funding to advance AI research for public benefit. The consortium will operate a state-of-the-art computing center at the University at Buffalo SUNY campus, using high-performance computer systems typically seen in major technology companies.
The current award round continues NYPA’s ongoing economic development efforts. The authority’s programs have collectively generated billions in investment and supported hundreds of thousands of jobs across New York State. The ReCharge NY program alone has spurred significant private investment since its creation, while the Western New York Power Proceeds program has supported more than 60 firms since 2012.
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