On July 29, 2025, the New York Power Authority ("NYPA") released for public comment a draft of the NYPA Renewables Updated Strategic Plan (the "Updated Plan"). The Updated Plan lays out a pathway for NYPA to contract with private developers to build and co-own up to seven gigawatts ("GW") of renewable generation capacity in New York State.
Developers who have not partnered with NYPA before may find that the process is complex and substantially different from partnering with private-sector development partners and investors. Below, we explore the Updated Plan and discuss the ins and outs of contracting with NYPA.
NYPA's Updated Strategic Plan
In January 2025, following the 2023 enactment of the Build Public Renewables Act ("BPRA"), which directed NYPA (i) to develop or acquire renewable generation capacity and (ii) to release a Strategic Plan concerning that directive every two years, NYPA released its initial strategic plan (the "Original Plan"). As we explained here, the Original Plan described a program by which NYPA (or its subsidiary "New York Renewable Energy Development Holdings Corporation") would acquire or co-develop, after a due diligence process, 37 new renewable generation facilities totaling 3 GW of capacity.
Released in July 2025, the Updated Plan replaces the Original Plan and significantly expands the number of projects under consideration. It designates 61 individual projects totaling nearly 7 GW of solar PV, wind and energy storage capacity—exceeding NYPA's current generation capacity of approximately 6 GW. Projects identified in the Updated Plan include proposed solar facilities of capacities from 1 MW to 350 MW, wind facilities up to 449 MW, and storage facilities of various technology types ranging up to 500 MW.
Because it is a public authority and creature of statute, NYPA is unlike the private sector partners or investors with whom developers typically work. In particular, project-development partnerships with NYPA feature a number of unusual contracting, procurement, and ownership requirements. As NYPA details in the Updated Plan, NYPA will conduct diligence on the 61 projects identified, elect to proceed with respect to a subset of those projects, and – as required by law – seek to procure majority-ownership positions in the project-level companies via a co-development model, or a build-transfer agreement, purchase-and-sale agreement, or membership interest purchase agreement.
Statutory Authority under the Build Public Renewables Act
Enacted on May 2, 2023, BPRA directs NYPA to, inter alia,
In exercising this authority under BPRA, NYPA is permitted to enter into public-private partnerships, though NYPA must maintain a majority ownership of the project at all times. Additionally, the projects undertaken by NYPA pursuant to the BPRA cannot be pursued unless they are included in the statutorily required Strategic Plan approved by NYPA's Board of Trustees, which may account for the high number of projects included in the Updated Plan.
NYPA may develop projects itself directly, or it may form wholly owned subsidiaries to carry out its duties under the BPRA2. Either way, the developing entity shall be subject to the New York Public Authorities Law, though it will be exempt from the New York Public Service Law ("PSL") and New York Public Service Commission regulation3. BPRA authorizes NYPA to sell the power and renewable energy certificates from the renewable energy generating projects through the NYISO-administered wholesale markets and/or to NYSERDA, load serving entities, green hydrogen manufacturers and other offtakers4. How those revenues are divided between NYPA and its development partners or co-facility owners is not prescribed by the BPRA and would be determined via the terms of the development or purchase agreement.
NYPA Development Considerations
Developers should consider how partnering or contracting with NYPA may differ from another private commercial party engagement.
As a matter of law, NYPA will work only with developers that it has pre-qualified; must include a project in its Strategic Plan to commence a partnership with that project's developer; and must take majority-ownership positions in the projects it develops, without "selling down" those positions during the project development cycle as other investors might.
Furthermore, NYPA's Guidelines for Procurement Contracts impose solicitation and other requirements on procurement contracts, which include contracts for goods or services for projects owned by NYPA. Under PAL § 2879-a, New York State Comptroller approval may be required for any contract awarded by NYPA in excess of $1 million under a non-competitive procurement method. Developers should consider how or when these requirements would apply if NYPA takes a controlling ownership stake in their project.
This may be particularly relevant where the developer's model contemplates executing a non-competitive engineering, construction, and procurement ("EPC") contract in conjunction with a member interest purchase agreement ("MIPA"), or the developer retains a minority ownership interest in the project. Projects that have executed equipment contracts (say, for safe harboring tax credit eligibility) should consider how these requirements would affect those commercial arrangements.
Other requirements imposed by the BPRA and the Public Authorities Law include:
- Classification of work on projects as "public work" and regulated by Articles 8 and 9 of the Labor Law, requiring the developer to, inter alia, "utilize a project labor agreement" with the labor organization of contracts and subcontractors;
- Compliance with Article 15-A of the Executive Law (concerning certified minority- and women-owned businesses) and Article 3 of the Veterans' Services Law (concerning certified service-disabled veteran-owned businesses); and
- The use of project components and equipment that are "made in whole or substantial part in the United States, its territories or possessions."
Next Steps
Public comments on the draft Updated Plan are due to NYPA by September 12, 2025, and virtual hearings will be held on August 19 and 20. The NYPA Board of Trustees is scheduled to vote to adopt the Updated Plan on December 9, 2025. Virtual hearings will be held on August 19 and August 20.
If developers or investors are interested in partnership with NYPA and wish to have projects considered for inclusion in the next iteration of the Strategic Plan, they should first seek pre-qualification. NYPA will reopen the pre-qualification process each year to continue to build its roster of potential development partners.
Footnotes
1. New York Public Authorities Law ("PAL") § 1005(27-a)(a)(i).
2. PAL § 1005(27-a)(f).
3. PAL § 1005(27-a)(f).
4. PAL § 1005(27-a)(h).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
