New York Launches 1-Gigawatt Energy Storage Solicitation to Strengthen Grid Reliability

The New York State Energy Research and Development Authority on Nov. 12 launched its second competitive solicitation for approximately 1 gigawatt (GW) of bulk energy storage, advancing the state’s target of deploying 6 GW of storage by 2030. The procurement aims to improve grid reliability, reduce electricity costs, optimize power generation and transmission, and support the integration of renewable energy as electricity demand and grid infrastructure requirements evolve.

The solicitation, administered through NYSERDA’s Bulk Energy Storage Program, is open to multiple eligible storage technologies and forms part of a broader plan to procure bulk storage through at least three annual solicitations. New York’s 2022 Energy Storage Roadmap identified the need for an additional 4,700 megawatts (MW) of storage, including 3,000 MW of bulk-scale capacity, 1,500 MW of commercial and community-scale installations, and 200 MW of residential storage. The state also plans to locate at least 35 percent of NYSERDA-supported off-site retail and bulk storage projects in downstate New York, where they could benefit disadvantaged communities and reduce emissions from peaking power plants.

The procurement will use an Index Storage Credit incentive mechanism established under the New York State Public Service Commission’s 2024 Energy Storage Order. Payments will be contingent on projects securing permits, completing installation, entering operation, and passing independent peer reviews and quality assurance inspections. Developers must also comply with updated state safety requirements covering facility siting, first-responder training, and emergency response planning.

The first bulk storage solicitation resulted in eight contracted projects totaling 950 MW across New York City, Long Island, the Hudson Valley, and Western New York. Once operational, these facilities will expand grid-scale storage capacity and improve the system’s ability to manage electricity supply and demand.

Interested developers must submit initial eligibility applications by Dec. 15, 2026, with qualifying applicants subsequently invited to submit detailed bids. Separately, NY Green Bank, a division of NYSERDA, is offering financing options to developers and investors to help address funding requirements for storage projects.