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For Immediate Release: 10/12/2023 Rory M. Christian, Chair Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080 23107/23-E-0142 October 12, 2023
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PSC OK’s Construction of 110 MW Battery Storage Facility in Suffolk County |
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$160 Million Project Will Spur Clean Energy Resources Approved Plans Include Significant Fire Safety Features
ALBANY — The New York State Public Service Commission (Commission) today approved the
construction and operation of a battery-based energy storage facility in the Town of Brookhaven, Suffolk County. The $160 million battery storage plant will be built by Holtsville Energy Storage, LLC, an independent developer of battery storage projects. The facility will be developed and operated on a merchant basis and participate in the wholesale energy market. The facility is expected to be operational by 2025.
“Energy storage is vital to building flexibility into the grid and advancing Governor Kathy Hochul’s ambitious clean energy goals,” said Commission Chair Rory M. Christian. “This project advances New York State’s greenhouse gas emissions reduction and renewable energy goals as outlined in the Climate Act.”
On March 12, 2023, the developer, Holtsville, filed a petition to construct, own, and operate an energy storage facility to be located on the southwest corner of Expressway Drive South and Morris Avenue in the Town of Brookhaven, Suffolk County. The Commission found that the project will not result in significant adverse environmental impacts and will help advance environmental justice goals by reducing reliance on older oil- and natural gas-fired peaker plants in New York State. The Commission also found that the project fits within New York’s energy goals and policies.
Holtsville says the project will generate local property tax revenues along with up to 200 local jobs during construction, plus some long-term jobs once it is operational. Battery energy storage facilities can also lead to long-term cost savings for electricity consumers by lowering the overall cost of providing electricity and by allowing customers to avoid paying premium pricing or peak-demand rates.
Today’s decision directly addresses rising concerns about fires at battery storage facilities and the Holtsville decision includes a required submission of an emergency operations plan, a fire control and suppression plan, including annual training for local fire and emergency response personnel, and notification and reporting requirements related to fires and other catastrophic events. Holtsville is directed to consult with at least one professional knowledgeable with fire safety protocols to ensure that aspects of the project related to design, construction, operation, maintenance, and decommissioning adhere to industry best practices.
Recent fire incidents at smaller battery storage facilities in Jefferson, Orange, and Suffolk counties have highlighted the need to adequately address fire safety, including measures to both prevent and respond to battery storage fires. To address these incidents, Governor Hochul ordered the creation of an Inter-Agency Fire Safety Working Group. The working group, which includes the Department of Public Service, is tasked with identifying best practices, addressing potential risks to public safety, and ensuring energy storage sites across New York are safe and effective. To date, the working group is assessing the cause of the fires and is undertaking a comprehensive review of fire safety standards. When the process is complete, the findings and resulting recommendations will offer guidance for potential State code updates and other protective measures.
As a wholly owned company of Savion, which is in turn a utility-scale solar and energy storage company operating on a standalone basis within a Shell Group portfolio, Holtsville has the financial wherewithal, the technical expertise, and the experience required to build, maintain, and provide reliable service. Additionally, as the facility will be operating in a competitive wholesale market, there will be no cost risk to ratepayers and just and reasonable rates are ensured.
The Commission’s decision is in line with Governor Hochul’s plan to significantly increase battery storage in New York State. On January 5, 2022, Governor Hochul announced in the State of the State, plans to double the State’s energy storage target to at least 6 gigawatts (GW) by 2030. The Department of Public Service and the New York State Energy Research and Development Authority (NYSERDA) are in the process of updating the Energy Storage Roadmap to reflect the expanded goal.
The developer said the project will have both direct and indirect positive economic effects on the town, county and school district, as well as on the individual landowners participating in the project. These effects will commence during construction and continue throughout the operating life of the project. In the short term, benefits will include additional employment and expenditures associated with construction of the project.
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 to foster 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, $3.3 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $2 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 over 3,000 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 light-duty 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 more than 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 23-E-0142 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.
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