A roadmap has been proposed to achieve 6GW of energy storage in New York state by 2030, equivalent to at least 20% of the peak electricity load.
The roadmap, which is now before the Public Service Commission for consideration, proposes 3GW of new bulk storage, 1.5GW of new retail storage and 200MW of new residential storage alongside an array of other actions intended to unlock the rapid growth of renewable energy across the state.
If approved, the storage buildout could reduce the projected future statewide electric system costs by an estimated nearly $2 billion, in addition to possible public health benefits because of the reduction of fossil fuel pollutants.
The proposal is that the new bulk storage would be procured through a new competitive Index Storage Credit mechanism aimed to provide long-term certainty to projects, while the new retail and residential storage would be supported through expansion of the existing incentive programmes.
It is proposed that at least 35% of the programme funding be used to support projects that deliver benefits to disadvantaged communities and that target fossil fuel peaker plant emissions reductions, particularly in the downstate region with its high concentration of both.
Another proposal is that the electric utilities should be required to study the potential of high-value energy storage projects towards providing cost-effective transmission and distribution services not currently available through existing markets.
A continued prioritisation by existing programmes on investing in research and development related to reliable long-duration energy storage technologies also is proposed, as is the payment of the prevailing wage for projects with a capacity of 1MW up as a continued commitment to driving jobs in clean energy.
“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,” commented Governor Kathy Hochul announcing the new framework.
“This roadmap will serve as a model for other states to follow by maximising the use of renewable energy while enabling a reliable and resilient transformation of the power grid.”
The roadmap was submitted by the New York State Energy Research and Development Authority and the New York State Department of Public Service.
Currently 1.3GW of energy storage is under contract with the state and moving towards commercial operation. Together with the proposed new 4.7GW brings the total up to 6GW.