1,230MW of energy storage projects deployed in New York State by the end of 2021

By mid-century, the New York grid will have 13 gigawatts of energy storage installed and connected, providing special tools for balancing the intermittency of renewable energy generation, Rich Dewey, chief executive of grid operator New York Independent System Operator (NYISO), said a few days ago.

The New York Independent System Operator (NYISO) released its 2022 Electricity Trends report earlier this month, analyzing the health of the grid and wholesale markets in the company's service area.

Introducing some key findings on 2022 electricity trends, Dewey said: “We see energy storage as a potentially valuable asset that will provide a unique tool for balancing the intermittency of wind and solar power.”

August 09, 2022

The company expects that due to changes in wholesale market rules, the installed capacity of energy storage systems deployed on the grid will increase to enable wider participation and thus increase energy storage system revenue.

New York State enacted the Climate Leadership and Community Protection Act (CLCPA) in 2019, requiring 70% of the state's energy to come from renewable sources by 2030 and electricity supply to be completely emissions-free by 2040.

To help achieve this, the state has also released a goal of deploying 3GW of energy storage by 2030. New York Governor Kathy Hochul doubled that target to 6GW in her State of the State address earlier this year.

However, the New York Independent System Operator (NYISO) claims that currently deployed energy storage systems are insufficient to support most of the renewable energy running on the grid. That means deploying not just relatively short-duration battery storage systems at scale, but also dispatchable, emission-free resources, Dewey said. While this could include a hydrogen facility or some sort of carbon capture and storage facility, he said there would still be a need for multiple energy storage technologies to meet market demand.

The New York Independent System Operator (NYISO) noted that New York's energy reserve program margins are now starting to shrink, and that fossil fuel power generation facilities are currently decommissioning faster than clean energy projects are coming online. In 2021, New York State's carbon emissions will actually increase slightly due to the closure of the Indian Point nuclear power plant and the addition of new fossil fuel power generation facilities.

Another major challenge in New York is what operators call "two grids." In fact, urban areas of New York State have high carbon intensity, low renewable energy generation, and high demand for electricity; while suburban and upstate areas have become significantly less reliant on fossil fuel generation, largely thanks to abundant hydroelectric power resources, and the electricity demand is also much lower.

Unsurprisingly, this is the rationale for grid operators to invest in transmission facilities to ease restrictions preventing electricity from entering southern New York, including the 9GW of deployment authorized by the state's Climate Leadership and Community Protection Act (CLCPA) legislation. Offshore wind power facilities.

The state has also set tough targets for deploying 10GW of distributed solar and reducing greenhouse gas emissions (GHG) from buildings, all of which could also drive the development of customer-side (BTM) energy storage, which could help ease the need to upgrade transmission systems. need.

Changes in wholesale markets for energy, capacity markets and ancillary services will help drive investment in grid-side and consumer-side energy storage, according to the New York Independent System Operator (NYISO).

According to the New York Department of Public Service (DPS), the state had 1,230MW of energy storage capacity deployed, contracted or awarded by the end of 2021, equivalent to 80% of reaching the 2025 mid-term policy target of 1,500MW.

The New York Department of Public Service (DPS) also stated that New York State has 12GW of installed energy storage capacity in its interconnection queue by the end of 2021.

New York Independent System Operator (NYISO) amendments to wholesale markets include filing compliance procedures for Federal Energy Regulatory Commission (FERC) Order 2222, which requires TSOs to reconfigure wholesale markets to allow distributed energy resources (DER) Participation.

The company has also applied to the U.S. Federal Energy Regulatory Commission (FERC) for approval of a tariff modification that would eliminate buy-side mitigation (BSM) costs for energy storage aggregation, and for approval of a rule change that would allow for a combination of wind or solar power facilities. Co-located energy storage systems participate in wholesale markets as power generation assets.

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