New York Commission Increases Contract Length, Prolongs In-service Date of Energy Storage Projects
The New York State Public Service Commission has prolonged the in-service date of new energy storage projects and increased the maximum length of contracts on such deployments at utilities in the state in order to realize New York’s targets on energy storage capacity. The state is set to bring over 1,300 megawatts of energy storage projects online. New York has invested over $500 million toward 130 MW of energy storage that is currently operational in the state as of November 2022.
Governor Kathy Hochul has unveiled a new framework as part of her proposed Executive Budget to realize 6 GW of energy storage through 2030, accounting for 20% of the state’s peak electricity load. The New York State Department of Public Service (DPS) and the New York State Energy Research and Development Authority (NYSERDA) has put forward a roadmap, requiring the approval of the state’s commission, which contains a number of recommendations to grow energy storage programs across the state.
The roadmap will back the build-out of energy storage projects across the state and generate cost savings worth approximately $2 billion. The plan will boost public health by cutting down exposure to pollutants emitted through the use of fossil fuels. DPS and NYSERDA have studied future market reforms in addition to procurement mechanisms to realize the 6 GW energy storage goal. The agencies have also ascertained research and development requirements to boost innovation in technology, in particular toward long-duration storage. These plans involve using energy storage to phase out fossil fuel power plants.
