New York utility regulators and the state’s grid operator this month took separate actions aimed at encouraging the wider use of energy storage.
On Sept. 17, the New York Public Service Commission approved rules bringing the state’s demand response program in line with its energy storage roadmap, which calls for the installation of 1,500 megawatts (MW) of storage by 2025.
The 2025 goal was established by Gov. Andrew Cuomo to help combat climate change under the Climate Leadership Community and Protection Act, which calls for economy wide carbon neutrality and achieving a zero-carbon emissions electricity sector by 2040, including 70% renewable energy generation by 2030.
The rules approved by the PSC modified the dynamic load management (DLM) implementation plans for the state’s six investor-owned electric utilities and implement two new DLM program options that will provide incentive payment certainty for participants for a period of three years or longer.
The DLM program offers specified payments for load relief that participants in the program provide to a utility when called on during an event. There are two types of payments: reservation payments, which are like a form of insurance paid regardless of whether an event is called or not, and performance payments, which are paid only for providing load relief if a utility calls an event.
There are five different types of demand response resources covered by the DLM program. Energy storage was already allowed to participate in two of the five categories, even though those programs were not necessarily designed with energy storage in mind. “The new Term-DLM and Auto-DLM programs are designed to be available to all technologies, but energy storage assets should be particularly well suited to participate in these programs,” PSC spokesman James Denn said via email.
The DLM program is being administered through a series of utility solicitations. The first round of solicitations is scheduled for 2021. The state’s utilities are expected to publish the requests for proposals for their DLM programs in October and November, Denn said.
The PSC order is available here.
In a separate action, the New York Independent System Operator (NYISO) announced the final step in a years-long process to open NYISO’s wholesale energy markets to energy storage. The action makes NYISO the first organized wholesale power market to allow full participation of energy storage resources (ESRs).
Opening the wholesale market to energy storage participation also paves the way for stakeholders to create a hybrid storage model that would allow energy storage to co-locate with wind and solar projects, NYISO said.
New York currently has about 93 MW of advanced energy storage capacity with 841 MW in the pipeline, in addition to 1,400 MW of existing pumped hydro storage.
New York’s Climate Leadership Community and Protection Act includes a commitment to develop 9,000 MW of offshore wind by 2035 and to reduce greenhouse gas emissions by 85% from 1990 levels by 2050.
New York public power utilities and energy storage
Public power utilities in New York state are pursuing energy storage projects.
For example, the New York Power Authority recently announced the start of construction on a large-scale, 20-MW energy battery storage project in northern New York, one of the largest such projects in the nation.
The facility, located in Franklin County at the top of the state, will advance progress toward achieving New York's target to have 3,000 MW of energy storage deployed by 2030, NYPA noted.
PSEG Long Island LLC, on behalf of the Long Island Power Authority, is planning to issue a request for proposals for bulk energy storage resources that will be interconnected to the Long Island electric grid.
In order to help achieve a productive RFP process, PSEG Long Island on March 3 issued a request for information to entities experienced in developing and operating energy storage resources.
