New York has an ambitious future planned for its electricity industry called “Reforming the Energy Vision” (REV). This plan proposes to transform NY’s electricity industry by making energy efficiency and other distributed resources part of the grid. The biggest change under REV is that distribution utilities will shift from the role they play today into “distributed service platform providers” to create a more dynamic, decentralized energy system.

During 2015, the NY Public Service Commission issued its “Track 1” and “Track 2” white papers, outlining suggestions for implementation and development of the vision. “Track 1” created a framework for the shift from a centralized to a customer-centric market that encourages adoptions of renewable generation. “Track 2” divulged more details into how utilities might align their own interests with the ones from REV; this included proposals for how to redesign rates, and how to establish the price of distributed energy resources.

Governor Cuomo has been a grand proponent of REV and has pushed to make the vision a reality. His administration has several initiatives that fund projects aiming to increase the use of renewables. For example, the NY Green Bank Fund works with partners in the finance community to invest $1 billion in clean energy technologies and projects. Additionally, Governor Cuomo issued a letter in December 2015, urging the NY PSC to commence a proceeding establishing a Clean Energy Standard for the state. The standard will order that 50% of electricity generated be from renewables by the year 2030.

Fully realizing the end-vision will take a decade or so, because the new business model will require many years of deliberations. If the program continues to gain momentum it could lead to a completely different business model for NY’s energy industry in the long-term. Moreover, just like most ambitious changes, the program is likely to need major funding and thus impact the end-user.