Gov. Kathy Hochul’s new framework for New York State to achieve 6 GW of energy storage by 2030, which represents at least 20% of the peak electricity load of the state, was submitted by the New York State Energy Research and Development Authority (NYSERDA) and the New York State Department of Public Service (DPS) to the Public Service Commission for consideration. It proposes 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.
If approved, the roadmap 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 harmful fossil fuel pollutants. This announcement supports the Climate Leadership and Community Protection Act goals to generate 70% of the state’s electricity from renewable sources by 2030 and 100% zero-emission electricity by 2040.
“Storing clean, renewable energy and delivering it where and when it is needed is one of the most critical challenges we must overcome to reduce statewide emissions, especially from traditional fossil fuel peaker plants,” Gov. Hochul says. “This roadmap will serve as a model for other states to follow by maximizing the use of renewable energy while enabling a reliable and resilient transformation of the power grid.”
NYSERDA and DPS carefully 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, as proposed by Gov. Hochul in her 2022 State of the State address.
This roadmap proposes the implementation of 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 6 GW goal by 2030.
“Accelerating the adoption of energy storage across the state will allow more wind and solar energy to be integrated into our electric grid, while improving air quality for many communities historically impacted by fossil fuel-generated pollution,” states Doreen M. Harris, president and CEO of NYSERDA. “Building on New York’s progress under Governor Hochul’s leadership, this roadmap will provide a pathway for the industry to partner with us to bring forward the next wave of projects that will help New Yorkers realize the benefits of this important technology.”
“Governor Hochul is a key supporter of energy storage development in New York State,” comments Department of Public Service CEO Rory M. Christian. “The framework that is being proposed provides New York with the resources it needs to speed our transition to a clean-energy economy and meet our critically important climate goals.”
The roadmap proposes 3,000 MW 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. It is looking for 1,500 MW of new retail storage, enough to power approximately 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.
In addition, the proposal includes utilization of at least 35% 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.
It will require 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. There will be a continued prioritization by existing programs on investing in research and development related to reliable long-duration energy storage technologies. Payment of prevailing wage will be a programmatic requirement for energy storage projects with a capacity of 1 MW and above, demonstrating the state’s continued commitment to driving family-sustaining jobs in clean energy.
The proposal expands 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 approximately $0.46 per month. The roadmap is available for public comment on the Department of Public Service’s website, with a subsequent decision-making expected in 2023.
Read more about the roadmap, including additional comments from officials, here.
