Storage Deployments Expected to Reduce Projected Future Statewide Electric System Costs by Nearly $2 Billion

Supports the Climate Leadership and Community Protection Act Goals to Generate 70 Percent of State's Electricity from Renewables by 2030 and 100 Percent Zero Emission Electricity by 2040

ALBANY — The New York State Public Service Commission (Commission) today extended the in-service date for energy storage resources and the maximum length of contracts for storage procurements by New York’s major utilities, two changes that will enable additional utility solicitations to help achieve New York’s energy storage goals. 

“New York’s energy storage deployment policy has effectively strengthened the market for developing and installing qualified energy storage systems in New York,” said Commission Chair Rory M. Christian. “The development and introduction of energy storage will build flexibility into the grid and advance New York’s ambitious clean energy goals.” 

As part of her proposed Executive Budget, Governor Kathy Hochul announced a new framework for the State to achieve a nation-leading six gigawatts of energy storage by 2030, which represents at least 20 percent of the peak electricity load of New York State. The roadmap, submitted by the New

York State Energy Research and Development Authority (NYSERDA) and the New York State Department of Public Service (DPS) to the Commission for consideration, proposes a comprehensive set of recommendations to expand New York's energy storage programs to cost-effectively unlock the rapid growth of renewable energy across the state and bolster grid reliability and customer resilience. 

The roadmap — which is pending approval by the Commission — will support a buildout of storage deployments estimated to reduce projected future statewide electric system costs by nearly $2 billion, in addition to further benefits in the form of improved public health because of reduced exposure to harmful fossil fuel pollutants.

NYSERDA and DPS carefully assessed potential market reforms and cost-effective procurement mechanisms to achieve six gigawatts, and identified research and development needs to accelerate technology innovation, particularly for long-duration storage. The agencies also considered approaches to energy storage development in a way that advances the elimination of the State's most polluting fossil fuel power plants, as proposed by Governor Hochul. 

Energy storage plays a critical role in supporting New York's zero-emission electric grid by enabling the integration of large quantities of renewable energy, helping to smooth generation, reduce curtailment, and shift renewable generation to where and when it is needed most. As of November 2022, New York has awarded over $500 million to support approximately 130 megawatts of operating energy storage in the State. There are more than 1,300 megawatts of additional energy storage under contract with the State and moving toward commercial operation. As New York electrifies buildings, transportation and industrial end uses, accelerating energy storage deployment will provide a flexible solution to help meet these additional demands on the grid and support the retirement of downstate fossil fuel generators near their end of life.

New York State's Nation-Leading Climate Plan 

New York State's nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues fostering a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation's most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.8 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York's clean energy sector in 2021 and a 2,100 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York's climate action with nearly 400 registered and 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State's largest community air monitoring initiative in 10 disadvantaged communities across the state to help target air pollution and combat climate change. 

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.