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For Immediate Release: 04/04/22 Rory M. Christian, Chief Executive Officer Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
22029 / 18-E-0130
April 04, 2022
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New York State on Course to Meet Aggressive Energy Storage Goals |
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Energy Storage Essential to Maximize Benefits of Clean Energy Sources, Enhancing Grid Stability
Technology Fundamental to New York’s Green New Deal Strategy and Nation-Leading Mandate to Achieve Economy-Wide Carbon Neutrality
ALBANY — The Department of Public Service (DPS) today issued the third ‘State of Storage’ annual report announcing progress in reaching New York’s statewide energy storage goal of 3,000 megawatts (MW) by 2030, with an interim objective of deploying 1,500 MW by 2025. Energy storage enhances the efficiency of the electric grid through many different applications such as demand charge management, demand response, distribution system local reliability, firming large-scale intermittent renewables, and wholesale market installed capacity and ancillary services, and supports the most aggressive climate-change goals in the nation, which puts New York on a path to economy-wide carbon neutrality.
“New York’s energy storage deployment policy has effectively strengthened the market for developing and installing qualified energy storage systems in New York,” said Department CEO Rory M. Christian. “The development and introduction of energy storage will build flexibility into the grid and advance Governor Hochul’s ambitious clean energy goals.”
On December 13, 2018, the Public Service Commission (the Commission) established a statewide energy storage goal of installing up to 3,000 MW of qualified energy storage systems by 2030, with an interim objective of deploying 1,500 MW by 2025. The Commission also adopted a suite of energy storage deployment policies and actions to achieve these goals. The portfolio of programs and actions approved by the Commission to date have been effective in building the foundations of a competitive market for qualified energy storage systems in New York.
Further, on January 5, 2022, Governor Kathy 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. DPS 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.
Total deployed and awarded or contracted projects at the end of 2021 increased 4 percent from a year ago to 1,230 MW in capacity, or about 82 percent of the 2025 target of 1,500 MW and 41 percent of the 2030 target of 3,000 MW. The number of energy storage projects in various interconnection queues throughout the State, which reflects some of the awarded or contracted projects noted above, and potential projects in the pipeline, also indicates robust activity in the industry. As a strong indicator of potential future deployment, over 12,000 MW of energy storage projects are presently in New York utility interconnection queues and the New York Independent System Operator (NYISO) interconnection queue, an increase of 50 percent from a year ago, though it’s possible not all of these projects would get built by 2030 due to circumstances outside of the Commission’s control.
The resulting public benefits of deploying up to 3,000 MW of energy storage are expected to include over $3 billion in gross lifetime benefits to New York’s utility customers, approximately 30,000 new jobs, the elimination of approximately 2 million metric tons of greenhouse gas emissions, and the avoidance of criteria air pollutant emissions such as nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter. A comparatively sized increase in public benefits is anticipated as New York reaches toward the 6 GW energy storage goal.
Energy storage use cases continue to include pairing with the existing pipeline of distributed solar PV being developed in the State as well as large scale bulk-level connected projects. While the supply chain issues, material cost increases, and increased competition for battery cells have led prices to increase during the 2021-2022 period, the costs for large scale storage projects are expected to decrease into the $150 to $200 per-kWh range by 2030, according to recent industry analyst reports. The next review of the energy storage program is scheduled to occur in 2023.
New York State's Nation-Leading Climate Plan
New York State'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 (CLCPA), New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. The CLCPA builds on New York's unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the State, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York's clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the CLCPA, 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 are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.
Today's report may be obtained by going to the Documents section of the Commission's website 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. |
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