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New York Utilities Say State's $2.5-Billion Energy Storage Program Should Focus on Larger Projects

New York’s six main utilities say that the state should prioritize bigger battery projects over customer-sited ones to get the most from $350 million in investments geared toward reaching a goal to deploy 1,500 megawatts of the systems by 2025. The utilities said that distribution system and bulk system projects will allow for the development of larger and more economic installations that can be targeted to meet the needs of the grid, while customer-sited applications generally benefit only the installing customer, except when the project is in a constrained area. Costs are a major concern as the battery program, estimated to come with a $2.5-billion price tag, risks inflating New York rates, which are already among the highest in the nation. The utilities underscored the need for the program to remain flexible because it is too early to gauge how the market will develop, particularly as technology evolves and costs fall. The service providers consist of Central Hudson Gas & Electric Corp., Consolidated Edison Inc., New York State Electric & Gas Corp., Niagara Mohawk Power Corp., Orange and Rockland Utilities Inc., and Rochester Gas and Electric Corp.

September 10, 2018
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