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New York adopts 3 GW energy storage goal, authorizes $310M incentive program

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New York adopts 3 GW energy storage goal, authorizes $310M incentive program

New York regulators on Dec. 13 set a goal of adding 3,000 MW of energy storage by 2030, with an interim target of 1,500 by 2025, while authorizing up to $310 million in incentives, implementing requirements of a 2017 law. Designed to help smooth intermittent solar and wind generation, the measures could make New York into a leading U.S. market for energy storage.

As a first step, six electric utilities must file plans by Feb. 11, 2019, to procure 350 MW through a competitive bidding process, of which Consolidated Edison Co. of New York Inc., a subsidiary of Consolidated Edison Inc., is responsible for 300 MW, according to the energy storage order

Also by that date, the New York State Public Service Commission directed the New York State Energy Research and Development Authority to file a plan for an incentive program it will administer, building on a new $40 million program for energy storage coupled with solar arrays.

In addition, the order requires regulators and utilities to collaborate on a study, due July 1, 2019, to explore how much conventional fossil fuel-fired peak power capacity "could be replaced or repowered economically with energy storage at varying durations without threatening reliability."

SNL Image

AES Corp. built this 30 MW battery project in California, the top U.S. energy storage market. New York is looking to boost its own energy storage deployments.
Source: AES

Along with a new energy efficiency target adopted by regulators to more than double utility energy efficiency progress by 2025, the moves "set a standard for the rest of the nation to follow, while supporting and creating jobs in these cutting-edge renewable industries," Gov. Andrew Cuomo said in a news release.

New York's actions come at the end of a breakout year for energy storage on political and regulatory fronts, including Colorado's passage of its Energy Storage Procurement Act, California's approval of the world's largest battery projects and $800 million in distributed storage incentives, and the opening of wholesale markets to energy storage across the country.

Industry groups and analysts said the moves are likely to make New York a major energy storage market.

"New York has a pretty concerted plan, and unlike some plans, there seem to be funds," Logan Goldie-Scot, head of energy storage at BloombergNEF, said in an interview. "It is an incredibly interesting market [that] looks like will become one of the national leaders by 2025."

The forthcoming incentive program will "jumpstart energy storage deployments" and "unleash the benefits of energy storage for New York's electric grid, economy and the environment," added William Acker, executive director of the New York Battery and Energy Storage Technology Consortium.

Separately, on Dec. 11, the board of trustees for the New York Power Authority, the largest U.S. state-owned utility, approved a $250 million investment to enhance grid flexibility through the use of battery storage and demand-side management.