Governor Kathy Hochul today announced that the New York State Public Service Commission approved a new framework for the State to achieve a nation-leading six gigawatts of energy storage by 2030, which represents at least 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 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. Today's announcement supports the Climate Leadership and Community Protection Act goals to generate 70 percent of the state's electricity from renewable sources by 2030 and 100 percent zero emission electricity by 2040.

“Expanding energy storage technology is a key component to building New York’s clean energy future and reaching our climate goals,” Governor Hochul said. “This new framework provides New York with the resources it needs to speed up our transition to a green economy, while ensuring the reliability and resilience of our grid.”

In finalizing plans for the roadmap, the Department of Public Service staff and the New York State Energy Research and Development Authority (NYSERDA) carefully assessed potential market reforms and cost-effective procurement mechanisms to achieve six gigawatts, and identified research and development needs to accelerate technology innovation, particularly for long duration storage. The agencies also considered approaches to energy storage development in a way that advances the elimination of the state's most polluting fossil fuel power plants, as proposed by Governor Hochul in her 2022 State of the State address.

The roadmap kicks 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.

Public Service Commission Chair Rory M. Christian said, "Governor Hochul has long been a staunch supporter of energy storage development in New York State, and with her steadfast support, we have been able to develop this roadmap to guide New York away from fossil-burning power plants to a clean energy economy.”

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “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. The roadmap approved today by the New York State Public Service Commission allows NYSERDA to expand our collaborations with partners and implement key strategies to safely deploy energy storage at scale in support of Governor Hochul’s goal to install six gigawatts by 2030.”

Roadmap details include:

• 3,000 megawatts of new bulk storage, enough to power approximately one million homes for up to four hours, to be procured through a new competitive Index Storage Credit mechanism, which is anticipated to provide long-term certainty to projects while maximizing savings for consumers;
• 1,500 megawatts of new retail storage, enough to power approximately 500,000 homes for up to four hours, and 200 megawatts of new residential storage, enough to power 120,000 homes for up to two hours, to be supported through an expansion of NYSERDA's existing region-specific block incentive programs;
• Utilization of at least 35 percent of program funding to support projects that deliver benefits to Disadvantaged Communities (DACs) and that target fossil fuel peaker plant emissions reductions, with program carve-outs for projects sited in the downstate region, given its high concentration of DACs and peaker plants;
• Requiring electric utilities to study the potential of high-value energy storage projects toward providing cost-effective transmission and distribution services not currently available through existing markets;
• Continued prioritization by existing programs on investing in research and development related to reliable long-duration energy storage technologies; and
• Payment of prevailing wage as a programmatic requirement for energy storage projects with a capacity of one megawatt and above, demonstrating the state's continued commitment to driving family-sustaining jobs in clean energy.

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. There are more than 581 megawatts of additional energy storage under contract with the State and moving towards commercial operation. 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.

NY-BEST Executive Director Dr. William Acker said, “NY-BEST applauds Governor Hochul and the Public Service Commission on the approval of New York State’s 6 GW Energy Storage Roadmap, which establishes nation-leading programs to unlock the rapid deployment of energy storage, reinforcing New York's position as a global leader in the clean energy transition. Energy storage plays a critical role in decarbonizing the grid, reducing electricity system costs and improving reliability while supporting clean energy jobs across the state.”

Alliance for Clean Energy Director of Membership Services & Policy Analyst New York Kyle Rabin said, “ACE NY applauds Governor Hochul, the New York State Public Service Commission, and NYSERDA on this important step to achieving a greater deployment of energy storage across the state. Battery energy storage plays a pivotal role in improving grid reliability, stabilizing electricity prices, harnessing the full power of renewable energy, reducing New York’s reliance on fossil fuels, and transitioning to a modernized electric grid and is an important part of reaching our clean energy and climate goals."

The New York State Building and Construction Trades Council President Gary LaBarbera said, “A critical part of building New York’s green infrastructure is laying out a framework for establishing an efficient energy storage system that will not only bolster our grid resilience, but also create thousands of family-sustaining union careers for hard working people. This new plan from the New York State Public Service Commission will play a major role in expanding our storage program, enabling us to achieve the goals set out by the CLCPA and deliver reliable renewable energy to more New Yorkers, all while giving more tradesmen and tradeswomen the opportunity to pursue the middle class. We applaud Governor Hochul for continuing to push forward these key initiatives that will improve the lives of all New Yorkers.”

New York League of Conservation Voters President Julie Tighe said, “To unleash the full potential of renewable energy, we need the ability to store all the wind, solar, and hydro power that is being built across the state so we can distribute it back to the grid when power demand is greatest and replace dirty ‘peaker’ fossil fuel plants. We applaud Governor Hochul and the Public Service Commission on the energy storage roadmap, which puts us on a path to better air quality and fewer greenhouse gas emissions.”

New York State's Nation-Leading Climate Plan

New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts – including the New York Cap-and-Invest program (NYCI) and other complementary policies – to reduce greenhouse gas emissions 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economywide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.