New York Governor Andrew Cuomo has unveiled his plan to provide $280 million of support for energy storage projects. This funding, announced during Earth Week, is part of a $400 million investment to achieve New York's energy storage deployment target of 3,000 MW by 2030, and supports Governor Cuomo's Green New Deal, a clean energy and jobs agenda that puts New York State on a path to a carbon-neutral economy.
"While the federal administration denies the devastating reality of climate change, New York continues to invest in its future by building a more efficient clean energy system," Governor Cuomo said.
Energy storage enhances the efficiency of the electric grid by capturing excess power from wind and solar energy sources and storing that excess power in industrial-sized batteries for later use. Importantly, energy storage will enable these resources to meet periods of peak demand.
New York Power Authority President and CEO Gil C. Quiniones said, "Expanding energy storage is key to building flexibility into the grid and advancing renewable energy solutions so we have an efficient and dependable energy supply especially at times of peak energy demand and during emergencies."
The New York State Energy Research and Development Authority's (NYSERDA) Market Acceleration Bridge Incentive Program will help incentivize approximately two-thirds of the State's 1,500-MW target of energy storage by 2025, supporting a self-sustaining market for the State. Funding is available in two categories:
$150 million for bulk storage projects: systems over five megawatts that primarily provide wholesale market energy or distribution services
$130 million for retail storage projects: customer-sited systems below five megawatts, which are smaller and installed alone or paired with onsite generation such as solar
Support for retail storage projects will be distributed through the Retail Energy Storage Incentive Program, a megawatt hour block system, which is similar in design to the State's successful NY-Sun Megawatt Block program. The Retail Energy Storage Incentive Program is divided into two regions: New York City and the rest of the state, excluding Long Island. Incentive amounts are assigned to each region and then decrease over time based on market activity by sector and region. Incentives are offered on a first come, first served basis and are calculated on the usable installed energy storage capacity in kilowatt hours. Incentives remain available until all blocks within a region/sector are fully subscribed.
Bulk storage projects have two options to receive incentive funding: A fixed incentive amount, which will decline each year through 2025, or through a utility bulk storage RFP, which will be issued later this year. Projects may only receive funding in one incentive category.
In addition to the $280 million available today, another $70 million will be allocated by NYSERDA in the future based on opportunities that have the greatest potential to support a self-sustaining storage market. An additional $53 million in Regional Greenhouse Gas Initiative funds will be made available later this year for retail and bulk storage projects specifically located on Long Island. NYSERDA will host a webinar on May 2nd for those interested in the bulk incentives and a second webinar on May 3rd for those interested in the retail incentives.
In addition, to further stimulate energy storage deployment across the state and spur private sector investment, the New York Power Authority issued a Request for Information to identify battery storage companies interested in participating jointly in competitive solicitations or other energy storage development opportunities within New York State. The RFI is open to energy storage developers, battery integrators, or others, utilizing lithium-ion battery technology in utility-scale applications. To access the RFI, visit NYPA’s Procurement page under the name Q19-6681MH Energy Storage Joint Opportunities. Responses are due May 13.
Dr. William Acker, Executive Director, NY-BEST, concluded, "Energy storage will play acritical role in enabling a carbon-free grid, improving electrical system efficiency, and driving economic growth. NY-BEST commends Governor Cuomo and New York State for their leadership and transformative actions to accelerate the market deployment of energy storage bringing these energy, economic, and environmental benefits to New York State.”