New York Independent System Operator (NYISO), which oversees New York's bulk electricity grid and wholesale electricity markets, recently unveiled a $74 million smart grid initiative which is being supported by a U.S. Department of Energy Smart Grid Investment Grant of more than $37 million.

NYISO also announced the start of construction of its new $35.5 million primary power control center being built adjacent to the NYISO 's headquarters building in the city of Rensselaer, near Albany.

The 64,000-square-foot control center will serve as the primary operational nerve center for the non-profit NYISO and will replace the NYISO's existing, 42-year-old Carman Road control center in the town of Guilderland in western Albany County. NYISO will also upgrade the system of the old Carman Road facility, so it will have a fully functional primary and backup control center to meet the demands from customers.

The combination of the new control center and renovation of the existing facility will ensure the NYISO's compliance with the North American Electric Reliability Corporation's proposed reliability standard that would require a fully redundant alternate control center.

The smart grid and control center projects will allow the NYISO to better fulfill its core mission of maintaining reliability of the state's bulk power system and operating economically efficient wholesale markets, according to officials at NYISO.

"Today, we're not just breaking ground on a state-of-the-art facility, we're flipping on an economic light switch for the Capital Region," said U.S. Sen. Charles Schumer, who attended the ceremony. "This project is going to support hundreds of construction jobs, 20 new jobs when all is said and done, and will help update our energy grid to spur even more economic development across upstate New York. This is a great day for the Capital Region and the NYISO."

The project also marks the first step in building a new foundation for New York's energy infrastructure that will incorporate smart grid technologies and renewable energy sources into their power delivery system. The federal investment will create new jobs and improve the electric grid's efficiency and reliability in New York.

"Our new control center will serve as a solid foundation for establishing a smarter, more reliable electric grid that is a key to the state's economic future," said Stephen G. Whitley, the NYISO's president and CEO, in a statement.

"The project will help New York state achieve a number of key energy goals, including enabling the increased integration of renewable energy supplies, cultivating innovative energy storage technologies, addressing the growing complexity of modern electric grid operations and effectively implementing the broader regional markets initiative that will provide New York with approximately $190 million in annual savings," Whitley added.

Construction of the new control center is expected to be completed in 2014, while the overhaul of the Guilderland facility is set to be finished by 2012.

Back in April, NYISO issued its annual review of the forces and factors affecting New York State’s electric system, “Power Trends 2011: Energizing New York’s Legacy of Leadership.” According to NYISO, “The immediate outlook for New York’s electric system is positive, but the sustained adequacy of power resources may be affected by a variety of emerging challenges.” 

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