The state Independent System Operator is continuing to call for an “all-of-the-above” investment in new power generation in New York state in its Power Trends 2026 report.

The report, which examines the forces shaping the electric grid and electricity markets, comes less than two weeks after the state Legislature voted to delay deadlines for the state’s transition to an all-electric power grid amid rising electric rates statewide and concerns the state couldn’t meet its electrification timelines.

The report details how electrification of the building and transportation sectors, along with the growth of large energy-intensive projects, is accelerating demand and placing new strains on the grid. At the same time, retirements and performance challenges among aging resources are reducing the system’s margin for error, underscoring the need for timely and sustained investment across a broad range of resource types, according to ISO officials.

“New York is at a defining moment for its electric system, comparable to the periods that first built and expanded the grid that powers our economy today,” said Rich Dewey, state ISO president and CEO. “An all-of-the-above approach to investment, supported by effective competitive electric markets, is needed now to maintain system reliability and support the state’s economic and environmental goals.”

Since 2019, the state has added 2.9 gigawatts of electric capacity, but deactivations have taken away 4.4 gigawatts of power production. Reliability assessments indicate transmission security concerns could arise as early as this summer in New York City and the summer of 2027 in Long Island. Summer baseline capacity margins have decreased from 2,227 megawatts in 2019 to 417 megawatts in 2026 with extreme weather eroding the state’s reliability margins in both summer and winter. In the past two winters cold weather pushed the system near its limits, the ISO reported this week, requiring frequent emergency actions that included activation of demand response to stabilize the grid’s operation. Emergency procedures, the ISO said, were used more often than in previous years.

Democrats and environmental advocates have been critical of past ISO reports, particularly those calling for investment in power plants that use natural gas or in the push for more nuclear plants in the state. It was noteworthy that the most recent Power Trends report both hailed the state’s growing renewable power production and called for continued investment in renewables as well as cleaner fossil fuel power production.

“As public policy accelerates the retirement of fossil�’fuel units, the system is losing resources that historically supplied the full suite of dispatchable reliability services. New renewable and storage resources, while critically important for decarbonization, do not yet provide comparable attributes at scale, especially for long�’duration or severe�’weather conditions. This widening gap between the capabilities needed and the capabilities entering the system contributes to shrinking reliability margins, increasing uncertainty in long�’term planning,” the report states.

The volume of clean energy and storage projects seeking to connect to New York’s grid remains at historically high levels, the ISO notes, and the ISO is working to speed up the process to bring renewable energy projects online. The speed at which a project proceeds can be impacted by factors that lie outside the interconnection process, including state and local siting requirements, environmental permitting schedules, financing, and project locations.

“A central challenge is the growing gap between the operational capabilities required to maintain reliability and those provided by the evolving resource mix,” Dewey said. “Conventional generating units, many of which are 50 to 70 years old, continue to supply critical reliability services, including dispatchable output, voltage support, and dependable multi-hour performance. Yet these units face increasing risks of outages, maintenance constraints, and retirement pressures. These conditions underscore a fundamental need: New York requires additional new generation and infrastructure, especially resources that are flexible, dependable, and capable of operating through extended periods of high demand.”

Despite the issues, the ISO reported Tuesday that New York set a new record for solar generation on Wednesday, June 3. During the noon hour that day, a combination of behind-the-meter solar and front-of-the-meter solar generated 5,661 megawatts (MW). BTM solar accounted for 5,131 MW and FTM solar accounted for 530 MW. Together, solar power produced 29% of New York’s electricity demand during the Noon hour.

“This new record highlights the increasingly important role solar is playing on the grid,” Dewey said. “These low-cost resources help shave peak demand, reduce emissions, and underscore the need for an all-of-the-above approach to energy development during the grid in transition.”