NEW YORK PUBLIC SERVICE COMMISSION
PSC Approves Energy Storage Implementation Plan

The New York State Public Service Commission (Commission) today (Feb 13) approved the retail and residential energy storage program Implementation Plan, filed by the New York State Energy Research and Development Authority (NYSERDA). In its decision, the Commission directed NYSERDA to modify the Implementation Plan to allow for resources that participate in the New York Independent System Operator (NYISO) distributed energy resources program to be eligible for the retail storage incentive.

"Energy storage is crucial as New York works to decarbonize our electric grid, manage increased energy loads, and optimize the integration and use of clean, renewable energy," said Commission Chair Rory M. Christian. "Today's decision moves forward our landmark energy storage program."

In June 2024, Governor Hochul announced that the Commission had approved a new Energy Storage Roadmap for the state to achieve a nation-leading six gigawatts of energy storage by 2030, which represents approximately 20 percent of the peak electricity load of New York State. The Roadmap is a comprehensive set of recommendations to expand New York's energy storage programs to cost-effectively unlock the rapid growth of renewable energy across the state and bolster grid reliability and customer resilience. The 6 GW goal established in the Roadmap, and adopted by the Commission in its 2024 Energy Storage Order, was divided to ensure adoption across the retail, residential, and bulk energy storage sectors. 

As relevant to today's Order by the Commission, the 2024 Energy Storage Order established a goal of deploying 1,500 megawatts (MW) of retail energy storage and 200 MW of residential energy storage by 2030 and directed NYSERDA to file an Implementation Plan.  Today the Commission approved the Implementation Plan for the retail and residential components. The Implementation Plan for the Bulk Energy Storage component is currently under review by the Commission.

The 6 GW Roadmap will support a buildout of storage deployments estimated to reduce projected future statewide electric system costs by nearly $2 billion, in addition to further benefits in the form of improved public health because of reduced exposure to harmful fossil fuel pollutants.

The Roadmap is a comprehensive set of recommendations to expand New York's energy storage programs to cost effectively unlock the rapid growth of renewable energy across the state and bolster grid reliability and customer resilience.

The Roadmap kicked off programs toward procuring an additional 4.7 gigawatts of new storage projects across the bulk (large-scale), retail (community, commercial and industrial), and residential energy storage sectors in New York State. These future procurements, combined with the 1.3 gigawatts of existing energy storage being procured or already under contract with the state and moving toward commercial operation, will allow the state to achieve the six-gigawatt goal by 2030.

Energy storage plays a critical role in supporting New York's zero-emission electric grid by enabling the integration of large quantities of renewable energy, helping to smooth generation, reduce curtailment, and shift renewable generation to where and when it is needed most. As of April 1, 2024, New York has awarded about $200 million to support approximately 396 megawatts of operating energy storage in the state, which is included in the 1.3 gigawatts existing total. There are more than 581 megawatts of additional energy storage in the 1.3 gigawatts total under contract and moving toward commercial operation. NYSERDA continues to offer incentives for 332 MWs under the existing program.

As New York electrifies buildings, transportation and industrial end uses, accelerating energy storage deployment will provide a flexible solution to help meet these additional demands on the grid and support the retirement of downstate fossil fuel generators near their end of life.

New York State's Climate Agenda

New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

Today's decision may be obtained by going to the Commission Documents section of the Commission's Web site at www.dps.ny.gov and entering Case Number 18-E-0130 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission's Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.