New York’s Roadmap to Deploy 1,500 Megawatts by 2020, Enough

Energy Storage to Provide $2 Billion in Benefits; Create Up to 30,000 Jobs

ALBANY — The New York State Public Service Commission (Commission) today approved demand response program rules in line with the energy storage roadmap, providing opportunities for the creation of smart and innovative energy storage programs and that advance New York State’s progress toward its 1,500 MW storage goal. The 2025 goal — the equivalent electricity demand of one-fifth of all New York homes — was established by Governor Andrew M. Cuomo to help combat climate change and supports New York’s nation-leading clean energy goals under Governor Cuomo’s Climate Leadership Community and Protection Act.

“With this step, we advance the critically important deployment of energy storage in New York State,” said Commission Chair John B. Rhodes. “With viable and valuable energy storage systems, we will optimize our renewable energy sources and enhance grid reliability for the benefit of all New Yorkers.”

Achieving the state's ambitious 2025 target will deliver approximately $2 billion gross lifetime benefits to New Yorkers, including electric distribution system savings and reduced greenhouse gas emissions, as well as added resiliency to the electric grid by reducing the impact of outages caused by severe weather. Adding more energy storage into the system will also maximize the benefits of other renewable energy sources such as solar and wind and will help to ensure they are available when needed to meet peak demand for electricity.

The energy storage program supports New York's status as a home for the growing clean tech industry, which has the potential to create up to 30,000 new, good-paying jobs in the energy storage industry. It will build on New York's commitment to combat climate change and grow the energy storage sector, which has already seen steady job growth over the past five years.

New York State currently has approximately 93 MWs of advanced energy storage capacity deployed with 841 MWs in the pipeline, in addition to 1,400 MWs of traditional pumped hydro storage.

With its decision today, the Commission modified the dynamic load management (DLM) implementation plans for the six major electric utilities in New York State. These DLM plans, as modified by the Commission, implement two new DLM program options which will provide incentive payment certainty for participants for a period of three years or longer. These new DLM program options are designed to be attractive to customers making use of energy storage technologies, and will encourage further deployment of energy storage technologies as quickly as possible. In keeping with existing practice, it is expected that energy storage rates for PSEG LI will be consistent with the guidelines set forth today by the Commission.

New York State's Nation-Leading Climate Plan

Governor Andrew M. Cuomo's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to reach its mandated goals of economy wide carbon neutrality and achieving a zero-carbon emissions electricity sector by 2040, including 70 percent renewable energy generation by 2030, faster than any other state. It builds on New York's unprecedented ramp-up of clean energy including a $3.9 billion investment in 67 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector, a commitment to develop 9,000 megawatts of offshore wind by 2035, and 1,800 percent growth in the distributed solar sector since 2011. Under Governor Cuomo’s leadership, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments benefit disadvantaged communities, and advancing progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 TBtus.

Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 18-E-0130 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.