Dive Brief:

• New York has launched the second phase of its NY Prize microgrid competition, and will provide up to $1 million in funding to each of the eight communities designing microgrids to help ensure power reliability during outages and emergencies. 
• The NY Prize competition is a part of the state's Reforming the Energy Vision (REV) strategy; microgrids are viewed as a way to help integrate renewable power, which will help the state meet its 50% renewables goal by 2030.
• New York awarded 83 grants of $100,000 each for microgrid feasibility studies last year in the first phase of the competition, more than twice the projects it had initially intended to select.

Dive Insight:

New York is continuing work to revamp its power delivery system, and has kicked off the second phase of NY Prize with $8 million on the line for communities proposing projects.

“This competition will help make communities more resilient as well as bring New York one step closer in its goal toward achieving 50%renewable energy by 2030,” Gov. Andrew Cuomo said in a statement “By creating strong local power networks, we can help modernize our energy grid while providing clean, reliable power to New Yorkers for years to come.” 

Local governments, community organizations, non-profit entities and for-profit companies can apply for the awards, and the state stressed that applicants need not have participated in the NY Prize Phase I competition, to participate. However, all applicants must provide a completed benefit-cost analysis model and comparable feasibility analysis for their proposed microgrid. 

Projects not chosen can still receive some support, however. Those not chosen as winners will be connected to resources at New York State Energy Research and Development Authority, the New York Power Authority, their local distribution utility and private sector companies.

More than 130 communities proposed microgrids in the initial phase, and 83 were selected to receive initial grants. Initially, up to 36 proposals were going to be selected, but New York expanded its scope. The final phase of the competition results in a $7 million grant to a single project to support final construction.

“Communities across the state now have access to meaningful data on the costs and benefits of building local microgrids to provide clean, reliable power in the event of emergencies, and many have already made significant progress in identifying world-class partners to help design and build these critical systems," said NYSERDA Director of NY Prize and Strategic Advisor for Innovation Micah Kotch.

But while the NY Prize competition is a way to help meet climate goals with relatively small investments, the state is also looking to larger initiatives. Cuomo has also announced $150 million in funding to support large-scale renewable energy projects across the state, saying it will "advance large-scale energy projects, continue build a clean energy economy, and generate opportunity for New Yorkers for generations to come.”

Cuomo said support for the new large-scale projects will be provided by NYSERDA, in its final solicitation through the main tier of the state's Renewable Portfolio Standard.

"Large-scale renewable energy projects curb greenhouse gas emissions, promote a cleaner environment for New Yorkers, bring jobs and an added tax base to rural areas, and reduce electricity price volatility," said NYSERDA President and CEO John Rhodes.

Deadline to submit Phase II proposals is Oct. 13. The request for proposals can be found here.