Dive Brief:

  • New York plans to award more than $5 million through a competitive solicitation process for long-duration energy storage projects that can discharge power for at least 10 hours, the New York State Energy Research and Development Authority said Wednesday.
  • The announcement came two days after Central Hudson Gas & Electric issued a request for proposals for scheduling and dispatch rights for at least 10 MW of grid-connected energy storage systems in its territory in Southeast New York.
  • The state LDES funding “will spur innovation, ultimately helping to reduce our reliance on fossil fuels and make progress towards our clean energy goals,” New York Gov. Kathy Hochul, D, said in a statement.

Dive Insight:

The developments highlight New York’s goal of deploying 3 GW of energy storage and facilitating additional deployment up to 6 GW by 2030, NYSERDA said.

New York first increased its 2030 storage target to 6 GW in 2022 and said earlier this year that the effort could cost up to $2 billion between bulk and retail storage capacity, though the state’s energy storage roadmap said it could reduce projected future statewide energy system costs by a similar amount.

Proposals for the latest LDES funding round are due Sept. 24, NYSRDA said. Awards will support a transition away from fossil peaker plants, which tend to be located near disadvantaged communities and emit significant amounts of particulate pollution, the agency said. At least 35% of state funding for energy storage projects would benefit these communities, according to the 2022 energy storage roadmap. 

Elsewhere in the Northeast, 4-hour battery storage systems are more cost-effective replacements for some aging Maine peaker plants than new gas turbines, according to an April report commissioned by the Clean Energy States Alliance.

“Investing in long duration energy storage solutions can help replace fossil fuel peaker plants while incentivizing clean energy development that will tangibly improve air quality and mitigate the future impacts of climate change for traditionally overburdened communities,” NYSERDA President and CEO Doreen Harris said in a statement.

The latest funding round will favor proposals that “will address cost, performance, and renewable integration challenges such as grid congestion, hosting capacity constraints and lithium-ion siting limitations in New York City,” NYSERDA said.

Earlier LDES funding rounds saw NYSERDA award more than $30 million to nine projects in 2022 and 2023. Those projects “are advancing a variety of technologies including hydrogen, zinc hybrid and iron-air battery technologies, nuclear-hydrogen long duration energy storage and a hydroelectric storage system that integrates directly with offshore wind development,” the agency said.

The LDES funding comes through the agency’s Renewable Optimization and Energy Storage Innovation Program, which will deploy $800 million over 10 years for low-emissions and carbon sequestration technology development, NYSERDA said.

CHGE’s RFP comes in response to a New York State Public Service Commission mandate that all New York electric utilities procure at least 10 MW of energy storage dispatch rights agreements for projects placed into service by Dec. 31, 2028, the utility said. Qualifying installations are eligible for NYSERDA’s bulk storage incentive program.

The RFP requires winning projects to enter into an energy storage services agreement with CHGE for up to 15 years, with CHGE acting as the facility’s energy manager, the utility said. CHGE prefers proposals sited near its Saugerties substation but will entertain proposals located anywhere within its territory.

Eligible systems must have more than 5 MW of dispatchable capacity at each location; have at least 2 hours of storage duration, though longer durations are preferred; demonstrate round-trip efficiency of 70% or higher; and preferably be capable of up to 5 discharge cycles per day and up to 300 discharge cycles per year, CHGE said.