New York plans to increase energy storage capacity to 6 GW by 2030

New York State has approved an updated plan for the massive expansion of energy storage. Its aim is to more than quadruple the current power capacity of battery storage systems to 6 GW by 2030. At peak demand, this capacity is expected to cover roughly one-fifth of electricity consumption for two to four hours. The plan supports New York’s goals for zero-emission electricity generation: the state aims to reach a 70% share by 2040 and 100% ten years later. 

New York State Governor Kathy Hochul announced that the state regulator had approved an updated framework for developing energy storage. The framework includes a set of measures and recommendations to support the construction of new storage capacity. The previous version of the plan dates from 2018, and its targets for storage capacity were half as high.

New York is now targeting 6 GW of installed capacity by 2030, compared with around 1.3 GW currently. The program also aims to support technological innovation that will drive the development of long-duration storage.

“The development of energy storage technology is a key part of building a clean energy system in New York and achieving our climate goals. This new framework provides New York with the resources it needs to accelerate our transition to a green economy while ensuring the reliability and resilience of our grid,” Governor Hochul said.

Of the newly planned 4.7 GW of capacity, Governor Hochul expects 4.5 GW to come from industrial and commercial installations capable of supplying power for at least 4 hours. The remaining 200 MW, with a 2-hour duration, is expected to come from new residential installations. Storage capacity of 6 GW is expected to cover 20% of the state’s peak electricity demand.

 “Governor Hochul has long been a dedicated advocate for energy storage, and with her continued support, we have been able to develop this plan. It will enable New York to move away from fossil fuel energy sources and usher in a clean economy,” said Rory M. Christian, Chair of the Public Service Commission.

The state is currently working on a new form of support for energy storage called the Index Storage Credit. It is intended to provide investors with partial revenue certainty, but investors will have to repay the support if their returns are high.

Support for renewable energy construction

The new battery storage systems are primarily intended to enable further development and deployment of renewable energy sources. The state aims to generate 70% of its electricity from zero-emission sources by 2040 and 100% by 2050. According to the new plan, achieving this goal will require a substantial amount of energy storage.

“Energy storage is essential for New York and for decarbonizing our electric grid. It enables us to manage growing demand and optimize the integration and use of clean, renewable energy,” said Doreen M. Harris, president and CEO of the New York State Energy Research and Development Authority.

The need for short-duration storage is projected to reach 12 GW in 2040 and 7 GW in 2050. New York estimates that long-duration storage capacity, with a supply duration of at least 8 hours, will reach 4 GW in 2035 and 6.8 GW in 2050.