Energy Storage

NYPA seeks storage partners as state offers $280 mil in funding

The New York Power Authority recently issued a request for information (RFI) to identify battery storage companies interested in participating jointly in competitive solicitations or other energy storage development opportunities within New York State.

The RFI, which is open to energy storage developers, battery integrators, or others, utilizing lithium-ion battery technology in utility-scale applications, will help NYPA gauge private sector interest in collaborating and determine what opportunities to pursue.

The RFI is available on NYPA's procurement webpage under the name Q19-6681MH Energy Storage Joint Opportunities. Responses are due May 13.

New York makes $280 million available for energy storage projects

Meanwhile, New York Gov. Andrew Cuomo on April 25 announced that $280 million of support is available for energy storage projects to accelerate growth within the industry and drive down energy storage deployment costs to build a sustainable and affordable market.

The funding announced by Cuomo is part of a $400 million investment to achieve New York's energy storage deployment target of 3,000 megawatts by 2030.

The New York State Energy Research and Development Authority's (NYSERDA) Market Acceleration Bridge Incentive Program will help incentivize approximately two-thirds of the state's 1,500-MW target of energy storage by 2025.

Funding is available in two categories:

  • $150 million for bulk storage projects: systems over five megawatts that primarily provide wholesale market energy or distribution services;
  • $130 million for retail storage projects: customer-sited systems below five megawatts, which are smaller and installed alone or paired with onsite generation such as solar.

Support for retail storage projects will be distributed through the Retail Energy Storage Incentive Program, a megawatt hour block system, which is similar in design to the state's NY-Sun Megawatt Block program.

The Retail Energy Storage Incentive Program is divided into two regions: New York City and the rest of the state, excluding Long Island. Incentive amounts are assigned to each region and then decrease over time based on market activity by sector and region.

Incentives are offered on a first come, first served basis and are calculated on the usable installed energy storage capacity in kilowatt hours. Incentives remain available until all blocks within a region/sector are fully subscribed.

Bulk storage projects have two options to receive incentive funding: A fixed incentive amount, which will decline each year through 2025, or through a utility bulk storage RFP, which will be issued later this year. Projects may only receive funding in one incentive category.

In addition to the $280 million, another $70 million will be allocated by NYSERDA in the future based on opportunities that have the greatest potential to support a self-sustaining storage market. An additional $53 million in Regional Greenhouse Gas Initiative funds will be made available later this year for retail and bulk storage projects specifically located on Long Island.

NYSERDA will host a webinar on May 2nd for those interested in the bulk incentives and a second webinar on May 3rd for those interested in the retail incentives.

In a related development, Cuomo in early April announced a partnership between the New York University Tandon School of Engineering Urban Future Lab and NYPA that will recruit and support startup businesses pursuing electric vehicle and energy storage technologies.

"Expanding energy storage is key to building flexibility into the grid and advancing renewable energy solutions so we have an efficient and dependable energy supply especially at times of peak energy demand and during emergencies,” said NYPA President and CEO Gil Quiniones.

“NYPA is well positioned to spur private sector investment in energy storage and collaborate with new partners as we look for the next generation innovations that will increase efficiency and make for a cleaner and greener energy system,” he said.

NYPA has a long history in large-scale energy storage

NYPA has a long history in large-scale energy storage through the construction and operation of the Blenheim-Gilboa Pumped Storage Power project and the Lewiston Pump Generating Plant. As a transmission owner, NYPA also has extensive knowledge of the New York bulk-power system, experience with the NYISO interconnection process and with the interconnection points that will provide optimal system reliability and deliverability. 

NYPA noted that the RFI supports Cuomo’s ramped up clean energy agenda, which includes achieving the 1,500 MW of storage by 2025 and the 3,000 MW by 2030.

Energy storage will help New York State achieve the goal of getting 70% of its electricity from renewable sources by 2030.