NYSERDA Bulk Energy Storage Incentive Program

In December 2018, the New York Public Service Commission (PSC) adopted 1,500 MW energy storage target by 2025, and a 3,000 MW target by 2030. As a part of the order, the PSC directed NYSERDA to develop incentive designed to meet the statewide energy storage goals. 

The Bulk Energy Storage Incentive program offers financial incentives for new energy storage projects greater than 5 MW (AC) that are connected to the grid. The energy storage system must provide services to the wholesale energy market, ancillary services, or distribution level service. 

Eligibility

The projects must be greater than 5 MW (AC). Any energy storage technology including chemical, thermal, or mechanical systems are eligible. These systems can be stand alone projects, or can be paired with another distributed energy resource technology system such as solar PV. Experimental, beta or prototype equipment is not eligible, the system must include manufacture warranty. 

The system must be physically located within the New York state and must be interconnected to the New York's bulk transmission system (NYISO). Projects located within ConEdison's service territory are not currently eligible for the incentive. Projects located in Long Island Power Authority's territory may be eligible for incentive in the future subject to the availability of Regional Greenhouse Gas Initiative (RGGI) funds. 

Additionally, to be eligible, the project must be i) in the stage 9 in the NYISO interconnection queue or later (must have completed feasibility study, and system impact study), ii) demonstrate site control, iii) approval from local authority having jurisdiction. 

Following systems are not eligible for the program - i) that have been involved in the NYISO market prior to March 11, 2019, ii) projects owned by the utility or New York Power Authority, iii) projects receiving other NYSERDA funds, iv) projects that have bulk dispatch rights contract, and iv) projects that receive NYSERDA retail storage incentive. 

The energy storage system must be able to maintain a minimum of 70% round trip efficiency. 

Program description

The incentive is awarded at a $/kWh rate for the amount of usable kWh (AC) of installed storage capacity at commercial operation date. Projects only providing energy arbitrage and or ancillary services will receive 75% of the stated incentive. There is no maximum project size, but the NYSERDA award will not exceed $25 million on a single project. 

The incentive is based on the year when the project application is submitted to NYSERDA. The NYSERDA Energy Storage dashboard will provide MWs and MWh committed and remaining funding in the project. 

For projects under 20 MW, the incentives are as follows-

Projects that are bigger than 20 MW will receive $85/kWh for projects starting in 2019, and $75/kWh for projects to be developed in 2021-2022. 

The incentives must be applied through the project contractor. 

Other NYSERDA resources on energy storage:

1. Battery Energy Storage System Guidebook to develop system planning and inspection processes for local communities.