National Grid Announces the Upstate Upgrade; Multi-year Initiative Will Improve Grid Resilience, Deliver Significant Benefits for Customers, Local Economies

Rhea-AI Summary

National Grid announces a $4 billion investment in the Upstate Upgrade project to enhance the energy delivery system in Upstate NY. The project aims to create thousands of jobs, generate over a billion dollars in economic growth, and deliver a smarter, stronger, cleaner energy grid over the next 6 years.

Insights

Energy Economist

Investments in energy infrastructure, such as National Grid's Upstate Upgrade, can have a profound effect on regional economies. The pledge of over $4 billion towards enhancing the electricity delivery system is indicative of a strategic shift towards a more resilient and sustainable energy framework. This move aligns with broader economic trends that prioritize infrastructure capable of integrating renewable sources and supporting the electrification of various sectors, including transportation.

From an economic standpoint, the projected creation of thousands of jobs and the stimulation of up to $1.9 billion in economic output could contribute to a multiplier effect within the local economy. This is particularly relevant as the energy sector's evolution spurs ancillary industries and services. Additionally, the expected up to 2% economic growth in project areas through 2030 suggests a significant impact on the local GDP.

However, while the short-term economic benefits are clear, the long-term returns must be evaluated against the costs of such a large-scale project. Factors such as project execution risks, potential cost overruns and the actual performance of the upgraded grid in terms of reliability and efficiency gains will be critical in determining the overall economic impact.

Environmental Policy Analyst

The Upstate Upgrade initiative by National Grid is a significant step towards meeting New York's Climate Leadership and Community Protection Act (CLCPA) goals. By focusing on the transmission of renewable energy, the project addresses a critical bottleneck in the shift towards a low-carbon economy. The modernization of the grid to withstand extreme weather and the implementation of advanced security measures to protect against external threats are pivotal in ensuring the reliability of the energy system amidst climate change-induced challenges.

While the environmental benefits of transitioning to a cleaner grid are evident, it is important to scrutinize the actual implementation of the projects to ensure that they deliver the promised environmental improvements. The integration of renewable energy sources must be executed in a manner that maximizes efficiency and minimizes any unintended ecological impacts during the construction phase. Moreover, the long-term sustainability of these projects will depend on their adaptability to future technological advancements and regulatory changes.

Infrastructure Development Expert

The scope of National Grid's Upstate Upgrade, with the construction or rebuilding of over 1,000 miles of transmission line and 45 substations, represents an ambitious overhaul of existing infrastructure. This level of investment in grid modernization is essential for accommodating the increasing demand for electricity, especially with the growing adoption of electric vehicles and heat pumps.

However, the success of such infrastructure projects hinges on meticulous planning and execution. It is important to consider the potential for disruptions to communities and the environment during the construction phase. Furthermore, the adoption of new technologies to prevent load loss and manage load fluctuations is a testament to the evolving nature of energy demand and the need for a smarter grid. The effectiveness of these technologies in practice will be a key factor in realizing the expected benefits of improved reliability and resilience.

Long-term, the project's ability to expand the property tax base and support local services will depend on sustained economic growth in the region. The interplay between the upgraded grid and the region's economic development trajectory will be an area to monitor closely, as it will offer insights into the broader impact of infrastructure investments on regional prosperity.

Portfolio of 70+ transmission upgrade projects across Upstate NY will generate thousands of jobs and more than a billion dollars in regional economic growth over next 6 years, while delivering a smarter, stronger, cleaner energy grid for generations to come

SYRACUSE, N.Y., March 20, 2024 /PRNewswire/ -- National Grid plans to invest more than $4 billion to transform its energy delivery system and propel economic growth across Upstate New York. Called the Upstate Upgrade, the collection of transmission enhancement projects will deliver a smarter, stronger, cleaner energy grid to support a more resilient energy network for generations to come. The company is embarking on more than 70 projects through 2030 that will generate thousands of new jobs and more than a billion dollars in additional economic growth, while ensuring the energy grid is able to meet customers' growing demand for electricity. 

"The Upstate Upgrade represents a landmark investment and speaks to how National Grid is reinforcing the grid to meet our customers' growing energy needs while leading the clean energy transition," said Rudy Wynter, National Grid New York President. "This six-year portfolio of work will transform the grid, improve reliability and resilience and enable us to deliver renewable energy to homes and businesses across New York." 

In addition to helping reach the state's climate goals as outlined in New York's Climate Leadership and Community Protection Act, the upgrades will deliver for Upstate New York customers by: 

Improving the Energy Grid's Resilience: By reinforcing and upgrading infrastructure like transmission lines and substations, the Upstate Upgrade will provide greater resilience in the face of increasingly frequent extreme weather, such as blizzards, tornadoes, and severe windstorms, which are destructive to grid infrastructure. That can mean fewer outages in the future and, when outages do happen, power can be restored quicker. Advanced security measures also will be implemented to safeguard our network from external threats. 

Strengthening the Upstate Economy: The Upstate Upgrade will benefit local economies by bringing over 1,700 new construction jobs, and associated residual spending to local communities, which in turn will create thousands of additional jobs, and at least $1.9 billion in overall economic output during and after construction, according to a third-party analysis performed by the consultancy West Monroe. The analysis also forecasts the Upstate Upgrade will create up to 2% economic growth in the project areas through 2030.  

Powering Upstate's Energy Future: As new industry drives growth and revitalizes the region, the Upstate Upgrade will ensure that the electric grid can meet customers' increasing day-to-day demands, including the needs of growing industries, while encouraging more investment and creating new jobs. 

The full scope of the Upstate Upgrade, including projects and benefits, can be found at our dedicated website: UpstateUpgrade.NationalGrid.com. 

Julie Tighe, President of New York League of Conservation Voters: "There is no transition without transmission. Decarbonizing the state's grid will require more than just generating wind, solar, and hydro power; we also need the poles and wires to deliver all that electricity to our homes and businesses. We applaud National Grid for prioritizing clean energy delivery in New York State."

Rob Simpson, President and CEO of CenterState Corporation for Economic Opportunity: "Recent economic development announcements in the Syracuse region and across Upstate demonstrate that the reliability of New York's electric grid and the availability of abundant, clean energy is a competitive advantage, nationally and globally. The Upstate Upgrade will support New York's increasing demand for electricity and encourage further investment and growth with a more efficient and resilient grid. With billions of dollars in new investment, and thousands of jobs generated directly and indirectly from National Grid's efforts, the Upstate Upgrade will help our businesses thrive and communities prosper." 

Hui Peng Koh, GlobalFoundries VP and General Manager: "We applaud National Grid for sharing in our commitment to innovation, job creation and sustainability. The electricity and semiconductor industries rely on each other, and the Upstate Upgrade will help our region achieve a cutting-edge energy infrastructure to support future growth."

Mark Eagan, President and CEO of the Capital Region Chamber and the Center for Economic Growth: "The Upstate Upgrade will transform our electric grid and make additional economic growth possible throughout the state and into the Capital Region. This $4 billion investment over the next six years will spur significant job creation and ensure our communities remain vibrant, prosperous, and growing for years to come. A more resilient, secure, and efficient grid will help drive growth for the Capital Region and all New Yorkers." 

Dottie Gallagher, President & CEO at the Buffalo Niagara Partnership: "The Buffalo Niagara Partnership welcomes National Grid's comprehensive plan to invest in its electric infrastructure.  Affordable, reliable energy is an essential component of economic development and National Grid's investments will help Buffalo Niagara and all of Upstate build a stronger, more competitive, and more equitable economy." 

Nicholas Bruno, Vice President Business Development at Mohawk Valley EDGE: "We commend National Grid for their ambitious Upstate Upgrade initiative, a testament to their commitment to building a smarter, stronger, and cleaner energy grid for the Mohawk Valley and Upstate New York. These upgrades bolster our local economies by contributing to the Marcy Nanocenter's prospective success, providing opportunities for additional industrial sites, creating new jobs, increasing property taxes, and ultimately contributing to a sustainable future aligned with New York's CLCPA goals. By prioritizing economic development and community engagement, National Grid sets a commendable example of corporate responsibility and partnership that Mohawk Valley EDGE applauds, and we look forward to seeing the results of their efforts."  

Garry Douglas, President of the North Country Chamber of Commerce: "Ample and reliable power in the North Country has never been more important than it is now with the major transition to electric from other energy sources and with economic development opportunities increasingly needing larger scale power access. That's why National Grid's Upstate Upgrade is so welcome and important. It is a very timely and indisputably crucial investment in sustaining and growing our regional economy in the years ahead and we thank National Grid for this historic commitment."  

Anne Boles, Executive Director of the Fulton Montgomery Regional Chamber of Commerce: "National Grid's Upstate Upgrade will power the Southern Adirondacks and Mohawk Valley's economic future. These critical upgrades will not only increase the capacity and resiliency of our electric grid, but will bring good-paying jobs, support existing businesses, and help spur new ones. Thanks to these investments, we can look forward to strengthening the region's business climate, economy, and quality of life. It is our mission at the Chamber to support innovation, and to partner in business, workforce, and tourism & economic development." 

Patrick J. Kelly, Chief Executive Officer St. Lawrence County Industrial Development Agency: "Robust, dependable, and secure electric grid infrastructure is a competitive necessity today and is essential for future economic development success. The Upstate Upgrade being undertaken by National Grid will continue to position central and northern New York State on the leading edge of the transition to renewable and clean energy sources, while reinforcing the foundation of our traditional industrial base." 

The Upstate Upgrade website includes more perspectives from local leaders, as well as ways National Grid supports our communities.

Modernized Grid Will Deliver for Customers, Communities  

National Grid's Upstate Upgrade focuses on modernizing the transmission system to meet the expanded electricity needs of the growing economy and to power more electrical devices than ever before, including electric vehicles and heat pumps. And, while the current network has served customers well for more than a century, it wasn't designed to connect and transport the amounts of wind and solar power that will be produced across the region.  

The company will construct or rebuild more than 1,000 miles of transmission line, 45 substations, and install new technologies that prevent load loss, monitor load fluctuations, and resolve congestion. This work also will protect the transmission grid against the increasing threat of extreme weather. 

"The Upstate Upgrade is our largest investment in New York's electricity transmission system since it was built more than 100 years ago." Wynter said. "While the grid has served us well for over a century, it's time to make the changes that will set us up for the next century of growth and success in New York. 

"In addition, the Upstate Upgrade brings with it a different type of energy: economic growth," Wynter said. "It will fuel local economies where our work will be concentrated with new jobs and spending, and expand the property tax base that supports local services, schools and communities." 

Economic analysis performed for National Grid by the consulting group West Monroe indicates that the Upstate Upgrade could generate nearly $2 billion in economic output across New York state. 

Economic Benefits of the Upstate Upgrade
Direct Jobs Created During Construction	More than 1,700
Total Economic Output	At least $1.9 billion resulting in up to 2% increase in expected growth across the project areas
Local Sourcing (During Construction)	More than $300 million

"The Upstate Upgrade means thousands of new jobs for the region, not just boosting local businesses, but also increasing property values and the prospects for new storefronts in the region with improved energy infrastructure," said Paul DeCotis, a senior partner at West Monroe. "As an Upstate New York resident, it's a real win-win for community members and business owners with more reliable electric service, opportunities for greater economic expansion, and long-term prosperity in our counties for generations to come."

Consistent, Transparent Information Sharing 

To support this historic grid rebuild, the company has launched a new website –UpstateUpgrade.NationalGrid.com – which will serve as a digital hub for details about the projects as they develop, including maps and updates, outreach events and how the Upstate Upgrade will benefit every New Yorker. 

"National Grid is committed to working with and strengthening the communities we serve," Wynter said. "One of the ways we do that is by conducting thoughtful, transparent outreach to residential and business customers, landowners, and elected officials to keep them informed about the Upstate Upgrade and offer them the opportunity to provide their thoughts. Our project website is another way we will be facilitating that conversation over the next six years." 

National Grid is the largest energy delivery company in Upstate New York, serving electricity to 1.7 million electricity customers across 25,000 square miles. 

About National Grid
National Grid (NYSE: NGG) is an electricity, natural gas, and clean energy delivery company serving more than 20 million people through our networks in New York and Massachusetts. National Grid is focused on building a smarter, stronger, cleaner energy future — transforming our networks with more reliable and resilient energy solutions to meet state climate goals and reduce greenhouse gas emissions.

For more information, please visit our website, follow us on X, watch us on YouTube, like us on Facebook and find us on Instagram.

View original content to download multimedia:https://www.prnewswire.com/news-releases/national-grid-announces-the-upstate-upgrade-multi-year-initiative-will-improve-grid-resilience-deliver-significant-benefits-for-customers-local-economies-302093887.html

SOURCE National Grid

FAQ

What is National Grid planning to invest in Upstate NY?

National Grid plans to invest over $4 billion in the Upstate Upgrade project to transform its energy delivery system.

How many transmission upgrade projects are included in the Upstate Upgrade project?

The Upstate Upgrade project includes more than 70 transmission enhancement projects across Upstate NY.

What are the economic benefits of the Upstate Upgrade project?

The project will create over 1,700 new construction jobs, generate at least $1.9 billion in economic output, and contribute to up to 2% economic growth in the project areas through 2030.

What is the purpose of the Upstate Upgrade project?

The project aims to deliver a smarter, stronger, cleaner energy grid to support a more resilient energy network for generations to come and meet customers' growing energy needs.

How will the Upstate Upgrade project benefit local economies?

The project will bring over 1,700 new construction jobs, create thousands of additional jobs, and result in at least $1.9 billion in overall economic output during and after construction.