By Kristoffer Tigue Inside Climate News

One of New York City’s largest power suppliers is ditching its plan to refurbish a fossil fuel “peaker” plant in Brooklyn and is proposing to build 350 megawatts of carbon-free battery storage in its place. It’s a bold pivot for an industry that has been reluctant to take the state’s climate law seriously, surprising even some environmentalists who have been fighting the peaker plant plan—and other fossil fuel projects in the state—for years. Today’s Climate breaks down what could be a watershed moment for the state’s fight against climate change.

Eastern Generation, which generates nearly 18 percent of New York City’s electricity and is an affiliate company of ArcLight Capital, announced last week that it was withdrawing its proposal to convert an aging oil-and-gas-fired power plant into a brand new gas-fired one. The company also announced it would retire two of the plant’s oil-fired units as soon as November of next year, six months ahead of schedule, citing the state’s climate law for the changes in its plans. The company said that it is “well positioned to assist in the transition to a carbon free future.”

So-called “peaker” plants only operate during times of high demand, such as particularly hot or cold days. In New York, environmental justice groups have targeted such facilities, saying they play an outsized role in polluting low-income neighborhoods and communities of color and contribute to climate change.

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But the reneged plan isn’t an isolated victory for environmental activists, who have long hoped that New York’s climate law would prevent the spread of new fossil fuel infrastructure across the state. In fact, Eastern Generation’s announcement may mark the first time a company has withdrawn a proposal in anticipation that it would conflict with New York’s climate mandates, which include transitioning the state’s power sector to net-zero emissions by 2040 and reducing overall greenhouse gas emissions 85 percent below 1990 levels by 2050.

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