E3 is pleased to announce the release of New York State Energy Storage Roadmap, prepared by the New York State Department of Public Service (DPS) and the New York State Energy Research and Development Authority (NYSERDA) in collaboration with E3 and other entities and stakeholders. The Roadmap charts a path forward to achieve Governor Andrew M. Cuomo’s goal to install 1,500 megawatts of energy storage by 2025, including $350 million in statewide market acceleration incentives to fast-track the adoption of advance storage systems.
E3 worked with DPS and NYSERDA to develop specific, tangible recommendations to support deployment of the most promising energy storage applications in the near-to-medium term (2019-25). These recommendations are designed to help New York achieve its energy storage goal in a manner that improves the overall efficiency and adds value to the electric system while targeting market barriers and accelerating cost reductions.
In developing the Roadmap, E3 used its RESTORE Energy Storage Dispatch Model to perform in-depth economic analysis of a broad range of storage project configurations across customer, distribution and bulk system market segments. This analysis informed the Roadmap’s recommendations and evaluated how they improve project economics and bankability. E3’s use case modeling indicated that many customer-sited and distribution system use cases and paired solar + storage projects are already viable in downstate New York, or will soon become so. In the longer term, many diverse use cases will become economic across the State as the system adds more renewables and storage costs continue to decline.
E3’s analysis was central to developing the Roadmap’s policy, regulatory, and programmatic recommendations. These recommendations – which were also informed by stakeholder conversations with customers, utilities, developers, the New York Independent System Operator, and other market participants – include:
- Providing $350 million in statewide market acceleration incentives to fast-track the adoption of advanced storage systems;
- Adding incentives for energy storage to NYSERDA’s successful NY-Sun Initiative to accelerate the development of solar + storage projects and allow access to federal tax credits;
- Regulatory changes to utility rates, utility solicitations, and carbon values to reflect the system benefits of storage projects;
- Continuing to address permitting and siting challenges and reduce indirect expenses and soft costs; and,
- Modifying wholesale market rules to better enable storage participation, including allowing storage to meet both distribution and wholesale system needs to provide greater ratepayer value.
The New York State Energy Storage Roadmap and DPS/NYSERDA Staff Recommendations can be found on the NYSERDA and DPS websites. Stakeholder engagement on the Roadmap’s actions will continue through the end of 2018, when the State is expected to establish a 2030 energy storage target. E3 looks forward to continuing to support New York’s energy storage and electric grid transformation initiatives.