Storage

New York approves plan to add six gigawatts of energy storage by 2030

New York approves plan to add six gigawatts of energy storage by 2030
A NineDot battery energy storage system. (Courtesy: NineDot)

Today New York Governor Kathy Hochul announced that the New York State Public Service Commission has approved a new framework for the state to achieve a nation-leading six gigawatts of energy storage by 2030, which represents at least 20 percent of the peak electricity load of New York State.

The Governor’s office describes the roadmap as a comprehensive set of recommendations to expand New York’s energy storage programs to cost-effectively unlock the rapid growth of renewable energy across the state and bolster grid reliability and customer resilience. The plan supports a buildout of storage deployments estimated to reduce projected future statewide electric system costs by nearly $2 billion. Today’s announcement supports the Climate Leadership and Community Protection Act goals to generate 70 percent of the state’s electricity from renewable sources by 2030 and 100 percent zero-emission electricity by 2040.

“Expanding energy storage technology is a key component to building New York’s clean energy future and reaching our climate goals,” Governor Hochul said. “This new framework provides New York with the resources it needs to speed up our transition to a green economy while ensuring the reliability and resilience of our grid.”

In finalizing plans for the roadmap, the Department of Public Service staff and the New York State Energy Research and Development Authority (NYSERDA) assessed potential market reforms and cost-effective procurement mechanisms to achieve six gigawatts, identifying research and development needs to accelerate technology innovation, particularly for long duration storage. The agencies also considered approaches to energy storage development in a way that advances the elimination of the state’s most polluting fossil fuel power plants, as proposed by Hochul in her 2022 State of the State address.

The roadmap kicks off programs toward procuring an additional 4.7 gigawatts of new storage projects across the bulk (large-scale), retail (community, commercial, and industrial), and residential energy storage sectors in New York State. These future procurements, combined with the 1.3 gigawatts of existing energy storage being procured or already under contract with the State and moving toward commercial operation, will allow the State to achieve the six-gigawatt goal by 2030.

“Governor Hochul has long been a staunch supporter of energy storage development in New York State, and with her steadfast support, we have been able to develop this roadmap to guide New York away from fossil-burning power plants to a clean energy economy,” added Public Service Commission chair Rory M. Christian. 

Roadmap details include:

  • 3,000 megawatts of new bulk storage, enough to power approximately one million homes for up to four hours, to be procured through a new competitive Index Storage Credit mechanism, which is anticipated to provide long-term certainty to projects while maximizing savings for consumers;
  • 1,500 megawatts of new retail storage, enough to power approximately 500,000 homes for up to four hours, and 200 megawatts of new residential storage, enough to power 120,000 homes for up to two hours, to be supported through an expansion of NYSERDA’s existing region-specific block incentive programs;
  • Utilization of at least 35 percent of program funding to support projects that deliver benefits to Disadvantaged Communities (DACs) and that target fossil fuel peaker plant emissions reductions, with program carve-outs for projects sited in the downstate region, given its high concentration of DACs and peaker plants;
  • Requiring electric utilities to study the potential of high-value energy storage projects toward providing cost-effective transmission and distribution services not currently available through existing markets;
  • Continued prioritization by existing programs on investing in research and development related to reliable long-duration energy storage technologies; and
  • Payment of prevailing wage as a programmatic requirement for energy storage projects with a capacity of one megawatt and above, demonstrating the state’s continued commitment to driving family-sustaining jobs in clean energy.

Energy storage plays a critical role in supporting New York’s zero-emission electric grid by enabling the integration of large quantities of renewable energy, helping to smooth generation, reduce curtailment, and shift renewable generation to where and when it is needed most. As of April 1, 2024, New York has awarded about $200 million to support approximately 396 megawatts of operating energy storage in the state. There are more than 581 megawatts of additional energy storage under contract with the state and moving toward commercial operation.

NY-BEST executive director Dr. William Acker applauded the approval of the roadmap, “Which establishes nation-leading programs to unlock the rapid deployment of energy storage, reinforcing New York’s position as a global leader in the clean energy transition,” he said. “Energy storage plays a critical role in decarbonizing the grid, reducing electricity system costs, and improving reliability while supporting clean energy jobs across the state.”

Earlier this month, Governor Hochul announced more than $5 million is now available for long duration energy storage projects through New York State’s Renewable Optimization and Energy Storage Innovation Program. This funding is meant to advance the development and demonstration of scalable long duration energy storage (LDES) solutions that harness and provide stored renewable energy to the state’s electric grid.

“We were pleased to see the New York Public Service Commission’s approval of the energy storage roadmap includes a carveout for long-duration energy storage,” noted chief commercial officer of Hydrostor, Jordan Cole. “With more renewable generation than any other state on the East Coast, deep duration storage is only going to become more critical to keeping the lights on as New York continues to work towards its decarbonization goals. New York has recognized that 8+ hour storage is needed to move the energy transition forward while maintaining the reliability of the grid, and we’re confident that other states will follow. We look forward to working with NYSERDA on its implementation plan.”

Back in May, the New York Power Authority (NYPA) pre-qualified 79 private developers and investors (including Hydrostor) to collaborate with NYPA on developing renewable energy generating projects, including solar photovoltaic, wind, battery storage, green hydrogen, geothermal, and related transmission.