BOSTON, November 4, 2026 – London Economics International LLC (“LEI”) has released its Semi-Annual Regional Market Update and 10-year Energy and Capacity Price Forecast for New York (3rd Quarter 2026). EI projects that, over the 2027-2036 forecast period, wholesale energy prices in the New York Independent System Operator (“NYISO”) market will rise by an average of 5.0% per year and capacity prices by 5.5% per year in nominal terms. Energy prices remain broadly steady through 2029 before climbing through 2036.
Rising natural gas prices and load growth from large loads and electrification are the main upward drivers, partly offset by the entry of zero-marginal-cost renewables and storage. Price gaps between zones are narrowing as new transmission, including the Champlain Hudson Power Express (“CHPE”), which entered service in May 2026, eases congestion.
In the capacity market, statewide prices are forecast to rise, with Long Island and the G-J Locality tracking close to that level. New York City remains the tightest and highest-priced locality, as peaker rule retirements and the cancellation of planned transmission into the city outweigh the relief provided by CHPE.
The report also finds that New York is unlikely to meet its target of 70% renewable generation until 2033, three years after the 2030 date set under the Climate Leadership and Community Protection Act, in line with the New York Public Service Commission’s own revised expectation.
The report is available at www.londoneconomicspress.com.