Dive Brief:
- The state of New York has introduced its first bulk energy storage solicitation, aiming to procure 1 GW from storage developers. This initiative supports New York’s goal to add a total of 6 GW of energy storage by 2030.
- The New York State Energy Research and Development Authority (NYSERDA) will use a new system of index storage credits. Each credit represents one MWh of discharge capacity each day, based on a model similar to the state’s renewable energy certificates.
- Kristina Persaud, a leader at Advanced Energy United, noted that this is one of the largest energy storage procurements in the U.S., signaling New York’s commitment to affordable clean energy.
Dive Insight:
Governor Kathy Hochul described the index storage credit system as a way to provide project owners with more stable revenue while encouraging participation in energy markets.
NYSERDA aims to integrate bulk energy storage into the grid to reduce costs, enhance power generation, and improve the reliability of the state’s electricity system.
Proposals for storage projects must adhere to new safety codes established by the State Fire Prevention and Building Code Council. Although these codes take effect on January 1, NYSERDA has already incorporated them into various energy storage programs.
Six former fire safety leaders from New York endorsed the new safety measures, highlighting the importance of energy storage for grid reliability and assuring residents of the safety of battery energy storage systems.
Recently, there has been public concern over planned battery facilities and the risks associated with lithium-ion batteries. Previous incidents, like a fire at a large battery facility, have heightened these worries.
Projects with enhanced safety features, such as improved explosion control and fire safety measures, will be prioritized in the bidding process.
Shawn Kelly, a policy director at United, referred to New York as a leader in energy policy that other states can follow.
In contrast to some federal policies, many see this state-led initiative as a positive example of how to foster clean energy development.
Persaud praised the solicitation process as a careful and considered effort by the New York Public Service Commission (PSC), which engages with stakeholders to ensure that various viewpoints are heard and taken into account in decision-making.
For developers interested in bidding, the deadline for eligibility applications to NYSERDA is September 4.