New York PSC increases size of of projects eligible for clean energy program
The New York State Public Service Commission (PSC) recently announced that it would increase the maximum rated capacity for projects eligible for the Value of Distributed Energy Resources (VDER) compensation system from two to five megawatts (MW).
“Expanding access to cost-effective, clean energy is a primary goal of New York’s Clean Energy Standard, which will create enough renewable energy to meet half of the state’s electricity needs by 2030,” Commission Chair John B. Rhodes said. “Our decision to expand the size of the projects eligible for compensation will further reduce costs and spur the development of solar power, energy storage and other localized forms of electric generation.”
The increase will apply to all project and technology types currently eligible for compensation except Combined Heat and Power (CHP). Only residential CHP with a rated capacity of 10 kW or below is currently eligible for VDER-based compensation. The commission is currently separately considering the expansion of eligibility of larger CHP units.
Integration of larger projects on the distribution system is also subject to technical review and payment by the applicant for any necessary system upgrades, in accordance with existing interconnection rules.
The VDER mechanism is designed to determine the values, including locational and environmental benefits, that distributed energy systems provide to the grid and society.
