Dive Brief:
- A new study released by the New York Battery and Energy Storage Technology Consortium (NY-BEST) found energy storage could save New York consumers $315 million if used to replace lost capacity from the impending closure of the Indian Point nuclear facility.
- The report written by consultancy Strategen found 450 MW of energy storage combined with wind, solar and energy efficiency can help replace lost capacity once Entergy's Indian Point nuclear facility shuts down by 2021.
- Dogged by years of controversy over safety and operational issues, Gov. Andrew Cuomo (D) and Entergy reached a deal at the beginning of 2017 to close the nuclear plant situated 25 miles from New York City, leaving 2,000 MW of capacity to be replaced.
Dive Insight:
A solution to replace the lost capacity from Indian Point could be in hand. The study from NY-BEST and Strategen proposes a mix of energy storage, renewables and efficiency as the right cocktail to meet New York's climate and clean energy goals.
Strategen believes the addition of storage and planned imports from the
Champlain Hudson Power Express (CHPE) transmission line could replace Indian Point.
The state is currently in the middle of one of the most ambitious business model and grid modernization efforts in the nation, better known as Reforming the Energy Vision (REV). Under the REV, regulators are seeking to incentivize utilities to deploy more distributed energy resources and demand management as an alternative to traditional infrastructure upgrades.
Also at play are New York's Clean Energy Standard and efforts to cut greenhouse gas emissions 80% by 2050. The Clean Energy Standard requires utilities to source half of their power from renewable energy resources by 2030, while also guaranteeing income for three struggling nuclear facilities.
While Gov. Cuomo acknowledged the need for nuclear facilities to help the state meet its carbon goals, he did not extend the same financial assistance to Indian Point. Cuomo has wrestled with operator Enetergy for years over the plant and concerns about its close proximity to New York City.
Two years ago, New York rejected a water use permit for the plant. In response, Entergy filed lawsuit, alleging the state's objections were concerns over the plant's safety, which falls under federal regulatory oversight. Fueling the fight even more, a transformer fire flared up in the plant that year, spurring additional concerns over the plant's safety.
Eventually both sides reached an agreement this year to close Indian Point 14 years before it was due for relicensing.
