Key Update:
- The New York State Public Service Commission (PSC) has given the green light for its retail and residential energy storage implementation plan, aiming to achieve 6 GW of energy storage capacity by 2030.
- Approved on February 13, this plan sets ambitious targets of 1,500 MW for retail storage and 200 MW for residential storage, along with incentives for participants in the state’s distributed energy resources program.
- A newly released forecast by Aurora Energy Research indicates that New York might slightly miss its 2030 energy storage goal, even as the state targets 30 GW by 2050.
Key Insights:
The PSC stated that New York’s goal of reaching 6 GW by 2030 could lower projected future electricity costs by nearly $2 billion while also enhancing public health by reducing exposure to harmful fossil fuel emissions.
This goal doubles the previously set target of 3 GW and aims to integrate 1.7 GW of new storage along with an additional 3 GW of bulk storage. The current storage capacity includes approximately 1.3 GW of assets already under state contracts.
The New York State Energy Research and Development Authority plans to initiate its first bulk storage solicitation by the end of June. Future solicitations are expected in 2026 and 2027 for projects targeting deployment from 2028 to 2030. As of January, New York had 430 MW of operational battery energy storage, mostly located in central and downstate areas.
While the average energy storage project lasts for about 2.5 hours, durations vary significantly, indicating ongoing efforts to figure out the best applications for batteries in the state’s energy landscape.
Recent regulations have allowed batteries to comprise nearly half of the 60 GW of ongoing projects under evaluation in New York. It is estimated that 55% of the capacity in the main interconnection queue will be operational by 2027 and 2028, particularly in the congested New York City and Long Island regions.
Experts predict that many projects in the queue are well-developed and likely to be completed successfully. New York aims to scale up its energy storage resources significantly by 2040 to achieve zero emissions in the power sector, with plans for diverse energy sources, including thermal resources and offshore wind capacity.
The state’s challenges in offshore wind development might necessitate stronger support for long-duration energy storage solutions to meet goals. Yet, many developers believe that opportunities for battery storage will arise in the coming years, especially as transmission connections between upstate and downstate regions remain limited.
In another development, the state and a joint venture recently canceled a contract for a major transmission line aimed at bringing zero-emission power to New York City by 2027. Meanwhile, storage developers are exploring innovative solutions for utility-scale projects, such as a significant battery installation replacing a retiring thermal unit on Staten Island.