Photo by Sean Pavone, Dreamstime.
The New York state capitol building at Albany.

New York Plans 6 GW of Energy Storage by 2030

Dec. 28, 2022
The storage deployments are expected to cut electric system costs by nearly $2 billion if set into motion.

energy storageNew York has a new framework to achieve 6 GW of energy storage by 2030, which represents at least 20 percent of the peak electricity load of New York, the governor’s office announced.

The New York State Energy Research and Development Authority and the New York State Department of Public Service to the Public Service Commission proposed the plan for consideration with a 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.

If approved, the plan will support a buildout of storage deployments estimated to reduce projected future statewide electric system costs by nearly $2 billion, in addition to further benefits in the form of improved public health because of reduced exposure to fossil fuel pollutants. The 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.

NYSERDA and DPS assessed potential market reforms and cost-effective procurement mechanisms to achieve 6 GW, and identified 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.

This roadmap proposes NYSERDA-led programs towards procuring an additional 4.7 GW 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 GW of existing energy storage already under contract with the state and moving towards commercial operation, will allow the state to achieve the 6 GW goal by 2030.

The plan proposes:

1.            3,000 MW of new bulk storage, enough to power about 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;

2.            1,500 MW of new retail storage, enough to power nearly 500,000 homes for up to four hours, and 200 MW 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;

3.            Use of at least 35 percent of program funding to support projects that deliver benefits to disadvantaged communities 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;

4.            Requiring electric utilities to study the potential of high-value energy storage projects towards providing cost-effective transmission and distribution services not currently available through existing markets;

5.            A continued prioritization by existing programs on investing in research and development related to reliable long-duration energy storage technologies; and

6.            Payment of prevailing wage as a requirement for energy storage projects with a capacity of 1 MW and up, demonstrating the state's continued commitment to driving family-sustaining jobs in clean energy.

Expanding the state's energy storage goal is expected to have an average electricity bill impact for New York customers of less than half a percent, or about $0.46 per month. The plan is available for public comment on the Department of Public Service's website, with subsequent decision making expected in 2023.

Energy storage enables the use 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 November 2022, New York has awarded over $500 million to support about 130 MW of operating energy storage in the state.

There are more than 1,300 MW of additional energy storage under contract with the state and moving towards commercial operation. As New York electrifies buildings, transportation and industrial end uses, accelerating energy storage deployment will provide a flexible solution to help meet these additional demands on the grid and support the retirement of downstate fossil fuel generators near their end of life.

New York State's climate agenda calls for a transition to clean energy that creates jobs and continues fostering a green economy. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's investments to ramp up clean energy including over $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments.

Combined, these investments are supporting more than 165,000 jobs in New York's clean energy sector in 2021, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 MW of offshore wind by 2035. 

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