New York — The New York State Energy Research and Development Authority said Thursday Key Capture Energy has completed a 20-MW battery energy storage installation, the state's largest to date, making progress toward legislation that mandates 3,000-MW of energy storage capacity by 2030.
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"This first project under NYSERDA's energy storage incentive program -- the largest battery installation in the state to date -- will enhance our electric system and demonstrate the value of large-scale energy storage systems that will accelerate our ability to meet the state's commitment to a carbon-free electric system by 2040," Alicia Barton, NYSERDA's president and CEO, said in a statement.
The lithium-ion battery storage project, called KCE NY1, is located at a transmission sub-station in Stillwater, about 20 miles north of Albany. The project is connected to the wholesale transmission network and will generate revenue for the Albany-based independent utility-scale battery storage developer through participation in the New York Independent System Operator's wholesale power markets, according to a state press official.
"New York State has the most ambitious energy storage deployment target in the US, and NYSERDA plays a vital role in promoting the state's clean energy future," Dan Fitzgerald, co-founder and chief operations officer at Key Capture Energy, said in the statement.
The company is also developing the KCE NY 3 battery storage project in Rockland County in conjunction with Orange and Rockland Utilities as part of O&R's Pomona Non-Wires Alternative (NWA) Project, according to a March statement.
That project will connect to the O&R system through its overhead distribution lines, allowing the utility to delay building new infrastructure and support peak energy demand.
Key Capture's 20-MW system is the first completed since Governor Andrew Cuomo announced the Market Acceleration Bridge Incentive Program in April, which included $150 million for bulk storage projects -- for systems over five MW that primarily provide wholesale market energy or distribution service, according to the statement.
Key Capture Energy was awarded $1.3 million from NYSERDA under the Bulk Storage incentive program for this project, the agency said.
GOALS AND FORECAST
In December 2018, the New York Public Service Commission approved its Energy Storage Order adopting Governor Cuomo's target for 1,500 MW of energy storage by 2025 and establishing the 3,000-MW target by 2030.
The NYISO expects battery storage to slightly increase load due to inefficiencies associated with converting and storing electricity, according to its 2019 Power Trends report.
The NYISO projects growth in grid-connected energy storage resources that will participate in wholesale markets as competitive suppliers. The grid operator also projects growth in behind-the-meter storage deployments that will reduce peak demand as customers use the technology to better manage their energy use in response to market signals and system conditions, according to the report.
The NYSO forecasts that New York will have slightly less than 4,000 MW of nameplate energy storage capacity installed by 2039, including both wholesale and BTM.
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