Photo 162583910 © Jekaterina Sahmanova |

New York Announces $3.5 Million Program for Electric Grid Modernization Aid

April 10, 2024
The funding initiative targets municipal utilities and rural cooperatives for clean energy development.

New York Governor Kathy Hochul has announced that $3.5 million in technical assistance funding is now accessible to support the formulation of proposals for electric grid modernization projects under the state’s Grid Modernization Program. This funding is aimed at helping municipal electric utilities and rural electric cooperatives in crafting proposals that promote the reliability of grid infrastructure and facilitate access to affordable clean energy.

The announcement marks the initial phase to assist municipal electric utilities and rural cooperatives in planning for an upcoming $24 million funding opportunity, facilitated by a U.S. Department of Energy (DOE) award to New York State last fall. Expected to be available this summer, the $24 million will be administered by the New York State Energy Research and Development Authority (NYSERDA) over two years through a competitive solicitation process to select grid modernization projects.

As of Dec.1, 2027, New York State municipals and rural cooperatives can apply for a one-time maximum technical assistance award of up to $200,000 per applicant on a first-come, first-served basis. This assistance can be utilized for conducting technical analyses, obtaining grant writing support for implementation funding, and developing a metrics reporting system to evaluate project success.

Municipals and rural cooperatives without technical assistance requirements may propose smaller implementation projects within the allowable maximum award amount. These projects should align with focus areas outlined in the solicitation to bolster New York State’s grid systems and communities against current and future climate risks. Applicants will be responsible for directly procuring any contractors required for technical services, which may encompass engineering, economics, and grant application services. NYSERDA will scrutinize all contractors working with municipals and co-ops to ensure compliance with the Authority’s and federal contractor standards.

“Strengthening our local distribution infrastructure is crucial to our public power mission of providing safe, affordable, and reliable electricity for our customers, members, and broader communities, said New York Association of Public Power President David Leathers. “The NYAPP utility and cooperative members appreciate this funding opportunity provided by NYSERDA through the Bipartisan Infrastructure Law that will support continued system investments to enhance the resiliency and reliability of our public power electric systems throughout New York State.”

New York was among nine states and five tribal nations awarded a combined total of $125 million last September as the seventh cohort of Grid Resilience State and Tribal Formula Grants. The $3.5 million made available today constitutes part of New York’s 15% matching funds required by DOE, sourced through the Regional Greenhouse Gas Initiative.


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