New York City peaker rule compliance filings show mixed approach to tighter emissions rules

New York — All of the 543-MW Ravenswood Generating Station's seventeen simple-cycle combustion turbines located in New York City will be shut down and retired prior to the May 1, 2023, peaker rule compliance date. Several other power plants also will be retired. Pollution control equipment will be installed on others, and some will be designated black-start only.

Power generation owners have filed plans to comply with New York State Department of Environmental Conservation regulations that tighten emissions standards for simple-cycle combustion turbines during the ozone season, which could impact roughly 3,500 MW of peaking power generation capacity around New York City.

S&P Global Platts obtained the compliance filings Monday through a Freedom of Information Act Request with the DEC. The filings provide further information into how generation owners plan to deal with the stricter regulations.

The rules are officially known as Subpart 227-3, Ozone Season Oxides of Nitrogen (NOx) Emission Limits for Simple Cycle and Regenerative Combustion Turbines.

Notably, Ravenswood, located in Queens, will shut its remaining combustion turbine units by May 2023. Several have already been mothballed and will officially be retired, according to the plan. Ravenswood is owned by LS Power.

The Ravenswood site has three power plants: a three-unit, 1,717.2-MW oil- and gas-fired facility that has been operating since the early 1960s; the combustion turbines that have been operating since the late 1960s; and 276.9 MW of combined-cycle generation that began operating in 2004.

An energy storage project using lithium-ion batteries will also be completed in three phases. The first phase will house up to 129 MW of energy storage capacity and would begin commercial operations in March 2021. The second phase totals up to 98 MW of energy storage capacity, and the third is 89 MW of storage capacity.

The compliance plan for the 647-MW Astoria Gas Turbine Power facility located in Queens and owned by NRG Energy was redacted.

Reliability

The information contained in the compliance plans will also be a key input into the New York Independent System Operator's Reliability Needs Assessment that determines how much power generation is required, and where on the system it is needed to maintain reliability.

The RNA is the first part of NYISO's two-year Reliability Planning Process that will conclude with the grid operator's 2021 Comprehensive Reliability Plan (CRP). If the RNA finds any reliability needs, the CRP will outline potential solutions.

There is flexibility built into the rules allowing certain units to run until 2029 if it's determined they are needed for reliability.

A portion of the units, including National Grid's 16-MW Port Jefferson Power Station located on Long Island, will be reclassified as "black-start only" meaning it would only be used if needed to bring the facility back into operation without reliance on the external power system. Such resources are needed to recover from power outages.

Several other units will install water injection equipment in order to comply with the peaker rule and continue operating.