New York State to award $280M for energy storage projects
New York State is offering $280 million for energy storage projects as part of an initiative to reach the goal of 3,000 megawatts of energy storage by 2030.
It also supports Gov. Andrew Cuomo’s Green New Deal, a clean energy and jobs agenda that puts New York State on a path to a carbon-neutral economy.
“While the federal administration denies the devastating reality of climate change, New York continues to invest in its future by building a more efficient clean energy system,” Cuomo said. “Energy storage is vital to our resiliency work and this funding will enable us to grow the industry and create jobs while we continue on our path toward meeting the country’s largest energy storage target.”
Energy storage is the process of capturing excess power from wind and solar energy sources and storing it in industrial-sized batteries for later use. Energy storage is designed to provide energy during periods of peak demand.
“We’re investing in projects and programs to advance our aggressive energy goals across the state,” Lt. Gov. Kathy Hochul said. “This funding continues our efforts to support clean energy and energy storage projects, growing the industry and creating good jobs. New York is leading the nation to ensure a cleaner and greener environment for future generations and working to combat climate change.”
As part of this award, $150 million will be available for bulk storage projects, which are systems over five megawatts that primarily provide wholesale market energy or distribution services. Also, $130 million will be available for retail storage projects, which are customer-sited systems below five megawatts.
In addition to the $280 million available, another $70 million will be allocated by the New York State Energy Research and Development Authority (NYSERDA) for future energy storage projects.
“[This] bold action is one of the largest commitments to energy storage in the country and will build the energy storage industry while creating economic growth to advance Governor Cuomo’s commitment to fighting climate change,” Alicia Barton, president and CEO of NYSERDA, said. “As more renewable energy resources such as wind and solar are brought online, energy storage will enhance the efficiency of the electric grid to better integrate these variable resources and provide New Yorker’s with a cleaner, more reliable energy system.”
New York is home to nearly 100 energy storage companies and ranks fifth in the nation for energy storage patents, according to a recent report by the American Jobs Project. The report found that the industry generates nearly $1 billion in annual revenue and employs 3,450 people in the state.
“Expanding energy storage is key to building flexibility into the grid and advancing renewable energy solutions so we have an efficient and dependable energy supply especially at times of peak energy demand and during emergencies,” New York Power Authority President and CEO Gil Quiniones said. “NYPA is well positioned to spur private sector investment in energy storage and collaborate with new partners as we look for the next generation innovations that will increase efficiency and make for a cleaner and greener energy system.”
