What's Happening?
The New York State Energy Research and Development Authority (NYSERDA) has initiated its second Bulk Energy Storage solicitation, aiming to procure approximately one gigawatt of bulk energy storage. This move is a key component of New York's 2022 Energy Storage Roadmap
and supports Governor Hochul's Clean, Highly Affordable, Reliable Grid Expansion (CHARGE) agenda. The CHARGE agenda is a comprehensive strategy focused on reducing consumer costs, ensuring a reliable zero-emission grid, building clean energy at scale, modernizing the state's grid, and fostering a clean economy. The solicitation is open to various energy storage technologies and seeks to achieve the state's target of deploying three gigawatts of bulk energy storage through at least three annual solicitations, contributing to the broader goal of six gigawatts of energy storage by 2030. NYSERDA-supported projects are required to meet stringent safety codes, and the New York Green Bank (NYGB) is prepared to offer financing options to project developers.
Why It's Important?
This solicitation is crucial for New York's energy future, as it directly addresses the need for enhanced grid reliability, affordability, and decarbonization. By integrating more bulk energy storage, the state can optimize power generation and transmission, reduce reliance on expensive peak-hour power, and ultimately lower costs for ratepayers. Energy storage is vital for maximizing the value of existing renewable energy infrastructure and facilitating the retirement of polluting peaker plants, particularly in disadvantaged communities. The emphasis on robust safety measures, including updated storage safety codes and comprehensive emergency response plans, ensures that the expansion of energy storage is conducted responsibly. The involvement of NYGB in providing financing underscores the state's commitment to bridging financial gaps and accelerating the deployment of clean energy infrastructure.
What's Next?
Entities interested in responding to the solicitation must complete an initial eligibility application by December 15, 2026. If deemed eligible, proposers will be invited to submit a bid proposal for project evaluation. NYSERDA will not disburse Index Storage Credit (ISC) incentives until awarded projects are permitted, installed, operating, and have passed peer review and quality assurance inspections. This phased approach ensures adherence to New York's high safety standards. The state's 6 GW Energy Storage Roadmap recommends deploying an incremental 4,700 megawatts, with at least 35% of off-site retail and bulk energy storage projects supported by NYSERDA planned for downstate New York to benefit disadvantaged communities. This initiative builds on the success of the first Bulk Energy Storage solicitation, which awarded eight projects adding 950 megawatts of new capacity.
