On December 28, 2022, New York Governor Kathy Hochul announced a plan for how the state will reach 6 GW of energy storage by 2030, representing at least 20% of peak electricity load. For more, read New York’s plan to expand storage capacity to 6 GW by 2030 includes centralized procurement method.
- The proposed plan is projected to reduce projected future statewide electric system costs by nearly $2 billion and the average customer bill would rise by less than 0.05%, or 46 cents a month.
- The plan calls for 3,000 MW of new bulk storage that would power about one million homes for up to four hours; 1,500 MW of new retail storage to power about 500,000 homes for up to four hours; and 200 MW of residential storage that would power 120,000 homes for up to two hours.
- The power would be procured through a competitive Index Storage Credit mechanism that officials say will provide some certainty to projects while saving money for consumers.
- At least 35% of plan funding would support projects to benefit disadvantaged communities and target fossil fuel peaker plant emissions reductions.
- Electric utilities would also be required to study the potential of high-value energy storage projects toward providing cost-effective transmission and distribution services not currently available in existing markets.
Path to 100% Perspective
New York’s plans to double its energy storage capacity by 2030 is an important step for the state to reach its goal of 100% zero-emission electricity by 2040. In the big picture, a key piece of the 100% emissions-free electricity puzzle will be to deploy significant amounts of long-duration energy storage, especially from 2030 onward. The need to meet daily ramping needs and energy requirements covering a few hours is currently driving the adoption of short duration battery energy storage. After 2030, multi-day and seasonal week-long gaps between supply and demand will require larger quantities of storage capacity. This is where long duration energy storage and sustainable fuels come in. As well as offering green, firm capacity, sustainable fuels can be stored for many months and can release megawatts of power within minutes when needed, when combusted with thermal balancing power plants.