New York PSC adopts energy storage road map detailing path to 6 GW by 2030

Dive Brief:

New York will deploy 6 GW of energy storage by 2030 under a framework approved Thursday by the New York Public Service Commission, the office of Gov. Kathy Hochul, D, said in a press announcement.
The 6 GW storage target represents at least 20% of New York’s peak electricity load and could trim nearly $2 billion from projected future statewide electric system costs as New York works toward generating 70% of its electricity from renewable sources by 2030, the announcement said.
“The road map approved today by the New York State Public Service Commission allows NYSERDA to expand our collaborations with partners and implement key strategies to safely deploy energy storage at scale,” New York State Energy Research and Development Authority President and CEO Doreen Harris said in a statement.

Dive Insight:

Hochul announced plans in January 2022 to double New York’s previous energy storage goal of 3 GW by 2030. The state released a draft road map in December 2022 showing how it would achieve its new target, including a centralized procurement mechanism to expedite solicitations and deployments.

The New York PSC’s June 20 order commits New York to the 6 GW by 2030 goal. It will require an additional 4.7 GW in new storage deployments to complement 1.3 gigawatts of existing storage assets already being procured or under contract.

New York has awarded about $200 million to support about 396 MW of operational energy storage assets and has more than 581 MW of additional storage “under contract with the State and moving towards commercial operation” as of April 1, the governor’s office announcement said.

New York’s road map aims for 3 GW of new bulk, or utility-scale, storage to be procured under the state’s new competitive Index Storage Credit mechanism and 1.5 GW of new retail storage, both for assets with discharge durations up to four hours, the announcement said. Retail storage includes commercial, industrial and community-scale installations.

The road map also envisions 200 MW of new residential storage assets with durations up to two hours.

The road map earmarks at least 35% of the program’s estimated cost of up to $1.98 billion for projects that benefit disadvantaged communities and reduce emissions from fossil-fueled peaker plants. That provision includes funding carve-outs for downstate New York, which has a high concentration of disadvantaged communities and a disproportionate share of the state’s aging fossil generating plants, the announcement said.

The road map also requires New York electric utilities “to study the potential of high-value energy storage projects toward providing cost-effective transmission and distribution services not currently available through existing markets,” the announcement said.

New York needs 12 GW of short-duration storage by 2040 and 17 GW by 2050 to “decarbonize the grid in a cost-effective and reliable way,” the road map said.

Additionally, the road map noted New York will need more than 4 GW of 8-hour storage by 2035 and 6.8 GW by 2050. In a move “meant to send a clear signal to developers that LDES is needed in the state and to recognize the amount of time needed for these resources to proceed through the planning, development, and interconnection processes,” it directs NYSERDA to include a target of 20% of 8-hour resources in each bulk storage procurement.

Additionally, NYSERDA’s Innovation Program should “prioritize research in LDES that can provide grid value and is likely to be developed … by 2040,” and work to enable large-scale LDES demonstration projects with capacities of 50 MW to 100 MW, the road map said.

Comments submitted to the PSC by LDES technology developers Form Energy, Hydrostor and Plug Power cheered the recommendations, with Form Energy recommending multi-day storage projects be included in all future grid planning processes and Hydrostor advocating for projects greater than 100 MW.

“With more renewable generation than any other state on the east coast, deep duration storage is only going to become more critical to keeping the lights on as New York continues to work towards its decarbonization goals,” Hydrostor Chief Commercial Officer Jordan Cole said. “New York has recognized that 8+ hour storage is needed to move the energy transition forward while maintaining the reliability of the grid, and we're confident that other states will follow.”