CHERRY VALLEY - A renewable energy policy adopted by the New York State Public Service Commission last week will help stimulate the market for alternative, or green market for energy.

The policy is designed to increase the proportion of energy from renewable sources that is generated in the state from 19 percent to at least 25 percent by 2013.

One of the beneficiaries of the new policy may be Reunion Power, which is currently in the early stages of developing a wind energy project in Cherry Valley.

"The policy we are adopting today balances a wide range of interests. Not only will it help us meet our growing demand for electricity, but it also will provide additional benefits by increasing fuel diversity for our state's generation portfolio, reducing our exposure to fossil fuel price spikes and supply interruptions, increasing economic development activity from a growing renewable energy industry, and improving our environment. Our decision today is based on a detailed examination of the costs, benefits, and potential impacts on system reliability of implementing an efficient and forward-thinking renewable energy policy for New York State," Public Service Commission chairman William M. Flynn said last week.

To meet the 25 percent target, it is estimated that New York State will need to add approximately 3,700 megawatts (MWs) of renewable resource generation capacity.

New York's renewable energy policy is one of the primary reasons energy developers like New York, said David Little, vice-president for development with Reunion Power.

"New York is very pro-active with its energy policy, Little said. "There's going to be a green market created."

Without the state's renewable energy policy, there would not be a framework to create the market and developers would be less interested, he said.

According to the company, all the power sold from the Cherry Valley project would contribute to the goal of 25 percent renewable energy.

Earlier this year, Reunion Power purchased the rights to a wind energy project in Cherry Valley from Global Winds Harvest. Although Global Winds Harvest had scaled the project back from two sites to one, Reunion intends to develop both the Cape Wykoff and East Hill sites.

The Cape Wykoff area could have as many as 18 turbines and the East Hill area could be home to as many as 20.

Reunion currently estimates the capital cost of the two sites to be almost $120 million.

Little said not much has changed in the last few months and that there are a lot of activities which must go on before they submit a site plan to the Cherry Valley planning board.

One of the things which must be done is to accumulate one year's worth of on-site wind data. Installation of wind measurement equipment is scheduled for this fall.

"Wind projects are long-term developments. It takes time," Little said.

By 2013, the state's Renewable Portfolio Standard Program is forecast to reduce statewide air emissions of nitrogen oxide by 6.8 percent, sulfur dioxide by 5.9 percent, and carbon dioxide by 7.7 percent, with a greater proportion of emission reductions expected in New York City and Long Island.

One of the Public Service Commission's objectives in implementing the policy is to sustain a market for renewable energy without the perpetual dependence on government-mandated subsidies. The Commission determined that an approach incorporating and supporting the growth of competitive retail markets for renewable resources and customer choice for renewable energy has a greater chance of producing a self-sustaining renewable energy industry.