Funding is Part of $400 Million Commitment to Achieve New York's Nation-Leading 3,000-Megawatt Storage Target
Supports Governor Cuomo's Green New Deal - a Clean Energy and Jobs Agenda Putting New York on a Path to Carbon Neutrality
Governor Andrew M. Cuomo today announced that $280 million of support is available for energy storage projects to accelerate growth within the industry and drive down energy storage deployment costs to build a sustainable and affordable market. This funding, announced during Earth Week, is part of a $400 million investment to achieve New York's nation-leading energy storage deployment target of 3,000 megawatts by 2030, and supports Governor Cuomo's Green New Deal, a clean energy and jobs agenda that puts New York State on a path to a carbon-neutral economy.
"While the federal administration denies the devastating reality of climate change, New York continues to invest in its future by building a more efficient clean energy system," Governor Cuomo said. "Energy storage is vital to our resiliency work and this funding will enable us to grow the industry and create jobs while we continue on our path toward meeting the country's largest energy storage target."
"We're investing in projects and programs to advance our aggressive energy goals across the state," said Lieutenant Governor Kathy Hochul. "This funding continues our efforts to support clean energy and energy storage projects, growing the industry and creating good jobs. New York is leading the nation to ensure a cleaner and greener environment for future generations and working to combat climate change."
Energy storage enhances the efficiency of the electric grid by capturing excess power from wind and solar energy sources and storing that excess power in industrial-sized batteries for later use. Importantly, energy storage will enable these resources to meet periods of peak demand.
The New York State Energy Research and Development Authority's (NYSERDA) Market Acceleration Bridge Incentive Program will help incentivize approximately two-thirds of the State's 1,500-megawatt target of energy storage by 2025, supporting a self-sustaining market for the State. Funding is available in two categories:
- $150 million for bulk storage projects: systems over five megawatts that primarily provide wholesale market energy or distribution services
- $130 million for retail storage projects: customer-sited systems below five megawatts, which are smaller and installed alone or paired with onsite generation such as solar
Support for retail storage projects will be distributed through the Retail Energy Storage Incentive Program, a megawatt hour block system, which is similar in design to the State's successful NY-Sun Megawatt Block program. The Retail Energy Storage Incentive Program is divided into two regions: New York City and the rest of the state, excluding Long Island. Incentive amounts are assigned to each region and then decrease over time based on market activity by sector and region. Incentives are offered on a first come, first served basis and are calculated on the usable installed energy storage capacity in kilowatt hours. Incentives remain available until all blocks within a region/sector are fully subscribed.
Bulk storage projects have two options to receive incentive funding: A fixed incentive amount, which will decline each year through 2025, or through a utility bulk storage RFP, which will be issued later this year. Projects may only receive funding in one incentive category.
In addition to the $280 million available today, another $70 million will be allocated by NYSERDA in the future based on opportunities that have the greatest potential to support a self-sustaining storage market. An additional $53 million in Regional Greenhouse Gas Initiative funds will be made available later this year for retail and bulk storage projects specifically located on Long Island. NYSERDA will host a webinar on May 2nd for those interested in the bulk incentives and a second webinar on May 3rd for those interested in the retail incentives.
According to a recent report by the American Jobs Project, New York is home to nearly 100 energy storage companies with expertise in hardware manufacturing, advanced materials, software development and project management, and ranks fifth in the nation for energy storage patents due to the depth of research across its universities, national lab and businesses. The report found that 3,450 people were employed in the energy storage industry in New York, generating nearly $1 billion in annual revenue.
Today's announcement is the latest in a series of actions Governor Cuomo has taken to accelerate the energy storage sector in New York State. Last June, the Governor released New York's Energy Storage Roadmap, which identified recommendations to enable New York to meet its target of 1,500 megawatts of energy storage deployed by 2025 and reap the benefits from this valuable solution. In December, Governor Cuomo announced a secondary target of 3,000 megawatts by 2030, the largest in the country, which will deliver more than $4 billion in gross benefits to New Yorkers and avoid two million metric tons of carbon dioxide emissions. In December, the Public Service Commission issued its Order Establishing Energy Storage Goal and Deployment Policy, which adopted both of these targets and approved the use of the incentive funds.
In addition, to further stimulate energy storage deployment across the state and spur private sector investment, the New York Power Authority issued a Request for Information to identify battery storage companies interested in participating jointly in competitive solicitations or other energy storage development opportunities within New York State. The RFI is open to energy storage developers, battery integrators, or others, utilizing lithium-ion battery technology in utility-scale applications. To access the RFI, visit NYPA's procurement webpage under the name Q19-6681MH Energy Storage Joint Opportunities. Responses are due May 13.
Governor Cuomo also recently announced an Innovation Challenge partnership with New York University Tandon School of Engineering's Urban Future Lab to support advanced pilot programs demonstrating new energy storage and electric vehicle technologies and business models. NYSERDA has also made $22 million available from the Clean Energy Fund for both energy storage projects already commercially available and technologies that have not yet been commercialized but could support renewable power sources in New York.
Alicia Barton, President and CEO, NYSERDA, said, "Today's bold action is one of the largest commitments to energy storage in the country and will build the energy storage industry while creating economic growth to advance Governor Cuomo's commitment to fighting climate change. As more renewable energy resources such as wind and solar are brought online, energy storage will enhance the efficiency of the electric grid to better integrate these variable resources and provide New Yorker's with a cleaner, more reliable energy system."
John B. Rhodes, CEO, Department of Public Service, said, "Energy storage is a critical component in Governor Cuomo's Green New Deal, as it helps promote the overall efficiency of renewable energy sources, such as wind and solar. New Yorkers want and demand a cleaner electric grid, and energy storage is a fundamental part of making that desire a reality."
New York Power Authority President and CEO Gil C. Quiniones said, "Expanding energy storage is key to building flexibility into the grid and advancing renewable energy solutions so we have an efficient and dependable energy supply especially at times of peak energy demand and during emergencies. NYPA is well positioned to spur private sector investment in energy storage and collaborate with new partners as we look for the next generation innovations that will increase efficiency and make for a cleaner and greener energy system."
Senator Kevin Parker said, "Investing in energy storage is a vital step to ensuring we have a clean energy future. As the Chair of the Energy and Telecommunications Committee I laud Governor Cuomo for creating this bold initiative in efforts to make certain we are on the right track and hitting our target goals presented in the Green New Deal."
Assemblymember Michael Cusick said, "Energy storage is the key to unlocking the full potential of renewable energy resources, including wind and solar. By enabling grid operators to time-shift the dispatch of intermittent energy generation, storage technology will make it possible to significantly increase the use of these zero-emissions facilities. I'm excited by today's announcement and look forward to working with our partners in government and industry to create a cleaner grid for future generations."
Kelly Speakes-Backman, CEO of the Energy Storage Association, said, "NYSERDA's commitment demonstrates that New York is serious about meeting its 2030 target and provides a clear signal for the energy storage industry to invest, hire and innovate in the Empire State. The launch of the Market Acceleration Bridge Incentive Program encourages the industry to invest now, both on the electric grid and at homes and businesses, while New York officials refine the rules to create a sustaining market for energy storage services."
Miles Farmer, Senior Attorney, Climate & Clean Energy at NRDC said, "Jumpstarting the energy storage industry will create reliable replacements for New York's oldest and dirtiest fossil fuel power plants, which for too long have cut lives short and contributed to asthma and other serious health problems in New York's most disadvantaged communities. As the state moves forward on reaching its ambitious clean energy goals, storage will help strengthen the grid while reducing harmful air pollution and protecting public health."
Dr. William Acker, Executive Director, NY-BEST, said, "Energy storage will play a critical role in enabling a carbon-free grid, improving electrical system efficiency, and driving economic growth. NY-BEST commends Governor Cuomo and New York State for their leadership and transformative actions to accelerate the market deployment of energy storage bringing these energy, economic, and environmental benefits to New York State.
New York State's Green New Deal
Governor Andrew M. Cuomo's Green New Deal, the nation's leading clean energy and jobs agenda, will aggressively put New York State on a path to economy-wide carbon neutrality. This initiative will provide for a just transition to clean energy, spurring the growth of the green economy and mandating that New York's power be 100 percent clean and carbon-free by 2040, one of the most aggressive goals in the U.S. The cornerstone of this newly proposed mandate is a significant increase of New York's successful Clean Energy Standard to 70 percent renewable electricity by 2030. As part of the unprecedented ramp-up of renewable energy, New York has already invested $2.9 billion into 46 large-scale renewable projects across the state as it significantly increases its clean energy targets. These targets include quadrupling New York's offshore wind target to a nation-leading 9,000 megawatts by 2035; doubling distributed solar deployment to 6,000 megawatts by 2025; and deploying 3,000 megawatts of energy storage by 2030. To support this ambitious work, NY Green Bank intends to use its expertise in overcoming financing gaps to foster greater environmental impacts per public dollar by raising over $1 billion in third party funds to expand climate financing availability across New York and the rest of North America.
Reforming the Energy Vision
The Green New Deal builds on Governor Andrew M. Cuomo's landmark Reforming the Energy Vision strategy to lead on climate change and grow New York's economy. REV is building a cleaner, more resilient and affordable energy system for all New Yorkers by stimulating investment in clean technologies like solar, wind, energy efficiency and storage. Already, REV has driven growth of nearly 1,500 percent in the statewide solar market, improved energy affordability for 1.65 million low-income customers, and has led to more than 150,000 jobs in manufacturing, engineering and other clean tech sectors across New York State.