The Long Island Power Authority Board of Trustees on Dec. 18 approved two battery energy storage contracts in Suffolk County: a 79-megawatt facility in Hauppauge and a 50 MW facility in Shoreham.
Key Capture Energy, LLC, an experienced utility-scale battery energy storage developer, will now coordinate with the Towns of Islip and Brookhaven to build and operate the lithium-iron-phosphate battery facilities under long-term contracts with LIPA.
“They will serve as a critical resource to meet clean energy goals and reliability needs for Long Island and the Rockaways by providing LIPA with capacity and dispatch rights from these energy storage facilities,” LIPA said.
John Rhodes, Acting Chief Executive Officer of LIPA, said, “Energy storage is essential to delivering reliable and affordable power as we increasingly switch to renewable energy sources and electrify our buildings and transportation systems. Integrating storage in the electric grid, especially in areas with high energy demand, will allow clean energy to be available when and where it is most needed. These projects are critically valuable for our electric grid and will be valuable additions to our power supply portfolio. These contract approvals now allow the developer, Key Capture Energy, to proceed with seeking final approval from the Towns of Brookhaven and Islip.”
The New York State Climate Leadership and Community Protection Act, enacted in 2019, set a target of 70% of the state’s electricity being produced from renewable resources by 2030, with the additional goal of achieving a 100% carbon-free grid. The Climate Act targets include a 3,000 MW statewide energy storage goal, which has since been expanded to 6,000 MW by the New York Public Service Commission.
Through a 2021 Bulk Storage Request for Proposals, LIPA intends to meet its share of these goals by procuring approximately 175 MW of new bulk energy storage contracts.
These facilities will be critical as the needs of the local electric grid are changing – in preparation for additional offshore wind generation and the retirements of existing fossil fuel peaking plants.
“The electric grid will need flexible solutions that can respond quickly when needed, given the intermittency of renewable generation, and discharge during peak demand hours to enhance reliability,” LIPA said.
79 MW “KCE NY 29” – Hauppauge, New York
The “KCE NY 29” project in Hauppauge will sell LIPA 79 MW and 316 megawatt-hours of capacity.
Over the 20-year contract, the cost to the average LIPA residential ratepayer will be $0.19 per month. A 12-foot-high barrier wall will be installed to serve as a sound barrier and landscaping will be added around the perimeter to further reduce its visibility.
The project will connect to the Kings Substation and is expected to be completed by 2028.
50 MW “KCE NY 31” – Shoreham, New York
The “KCE NY 31” project in Shoreham is being developed on a portion of the former Shoreham Nuclear Power Plant, which LIPA owns. LIPA will purchase a guaranteed 50 MW and 200 megawatt-hours of capacity from the project.
Over the 20-year contract, the cost to the average LIPA residential ratepayer will be $0.11 per month. The project will connect to the Shoreham Substation and is expected to be completed by 2028.
These projects will use lithium-iron-phosphate batteries with a discharge duration of four hours. These are the most common types of batteries used in utility-scale battery energy storage, and they enable increased integration of renewable energy sources while ensuring a resilient and reliable power supply. Both projects are executed under “Energy Storage Build-Own-Operate-Optional Transfer Agreements,” which provide LIPA the option to purchase the projects in the future.
As required under state law, these projects undertook an environmental review under New York’s State Environmental Quality Review Act. This act requires all involved local, regional, and state government agencies to examine the environmental impacts along with the social and economic considerations for a jurisdictional project or actions during their discretionary review.
Fire incidents at smaller battery storage facilities on Long Island and New York State have highlighted the need to adequately address fire safety, including measures to prevent and respond to battery storage fires, LIPA said.
Last year, to address these incidents, Governor Kathy Hochul announced the creation of an Inter-Agency Fire Safety Working Group to ensure the safety and security of energy storage. These two projects have incorporated all the Working Group’s recommendations to date.
Key Capture Energy and PSEG Long Island, LIPA’s service provider, conducted public outreach for both projects, including with local fire marshals and hazmat coordinators. The contracts will now be sent to the New York State Attorney General and Office of State Comptroller for approval before state and local permits can be issued.
