New York Kicks Off Storage Incentive Program, Allocating $280 Million Worth of Funding
The New York State Energy Research and Development Agency on April 25 announced a funding opportunity for two categories of projects as part of the state’s $400 million investment to attain the ambitious goal of deploying 3 gigawatts of storage by 2030. The state is making available $150 million for bulk storage projects comprising installations over 5 megawatts that mainly provide wholesale market or distribution services. The remaining $130 million will support retail projects made up of customer sited systems below 5 megawatts deployed as standalone facilities or paired with solar installations.
Bulk storage projects can avail the funding as a fixed incentive amount that declines each year through 2025, or a utility bulk storage request for proposals scheduled to be issued later this year. The retail incentive allocation will cover two regions — New York City and the rest of the state, but exclude Long Island — with amounts set to decrease over time based on market activity by sector and region.
The New York Public Service Commission announced $40 million last November to support storage-paired solar projects. In December, the commission authorized a $310 million market acceleration bridge incentive, which will help incentivize about two-thirds of the state’s goal of deploying 1.5 gigawatts of storage by 2025.
NYSERDA said that an additional $70 million will be allocated in the future to tap opportunities that have the greatest potential to support a self-sustaining storage market. Further, $53 million will be made available this year for retail and bulk projects on Long Island, using funds from the Regional Greenhouse Gas Initiative, a nine-state compact that established the nation’s first mandatory emissions trading program. The agency will host a webinar on May 2 to discuss the bulk incentives and May 3 for those interested in the retail incentives.
The agency also announced that the New York Power Authority has issued a request for information to identify battery companies interested in competitive solicitations or storage development opportunities. The request is open to storage developers, battery integrators, or other companies that utilize lithium-ion technology in utility-scale applications. Responses are due May 13.