NYSERDA Bulk Energy Storage Incentive Program

Program Name: NYSERDA Bulk Energy Storage Incentive Program
Program Sponsor: NYSERDA (State)
Program Type:          Rebates
Technology:               Bulk Energy Storage
Fuel:                        Electricity
Eligibility:  Must be installed within NY state/NYSIO region and be grid connected
Cost: Free

Description

The Bulk Energy Storage Incentive program offers financial incentives for new energy storage projects greater than 5 MW that are connected to the grid. The energy storage system must provide services to the wholesale energy market, ancillary services, or distribution level service.

Eligibility

  • Developers with projects that will interconnect into New York’s bulk transmission system or an investor-owned utility’s transmission or distribution system.
  • Projects in Long Island are not currently eligible. NYSERDA is working with the Long Island Power Authority to determine the most effective manner to incentivize bulk storage projects on Long Island.

For a project to be eligible it must meet the following requirements:

  • Above 5 MW providing wholesale energy, ancillary services, and/or capacity services
  • Commercially available chemical, thermal, or mechanical systems physically located within New York State and interconnected into New York’s bulk transmission system or an IOU’s transmission or distribution system
  • In Stage 9 in the NYISO interconnection queue or later (see https://www.nyiso.com/interconnections) or have begun the equivalent distribution utility study if connecting directly into the distribution system
  • Executed agreement demonstrating site control for the duration of the project’s lifespan
  • Completed draft Environmental Impact Study with a negative declaration as evidenced by meeting minutes of the local government or written approval
  • If applicable, proof that the required Article 10 Application has been deemed compliant.

The system must be physically located within New York state and must be interconnected to the New York’s bulk transmission system (NYISO). The following systems are not eligible for the program – i) that have been involved in the NYISO market prior to March 11, 2019, ii) projects owned by the utility or New York Power Authority, iii) projects receiving other NYSERDA funds, iv) projects that have bulk dispatch rights contract, and iv) projects that receive NYSERDA retail storage incentive. Projects located within ConEdison’s service territory are not currently eligible for the incentive.

How the Program Works

Incentives are awarded at a $/kWh rate for the amount of usable kWh (AC) of installed storage capacity at commercial operation date. Projects only providing energy arbitrage and or ancillary services will receive 75% of the stated incentive. There is no maximum project size, but the NYSERDA award will not exceed $25 million on a single project. The incentive is based on the year when the project application is submitted to NYSERDA. The NYSERDA Energy Storage dashboard will provide MWs and MWh committed and remaining funding in the project.

For projects under 20 MW, the incentives are as follows-

2019 2020 2021 2022 2023 2024 2025
$110/kWh $100/kWh $90/kWh $80/kWh $70/kWh $60/kWh $50/kWh

Projects that are bigger than 20 MW will receive $85/kWh for projects starting in 2019, and $75/kWh for projects to be developed in 2021-2022. The incentives must be applied through the project contractor.

Additional information on the program and its requirements can be found in the Program Manual [PDF].

Other NYSERDA resources on energy storage:

  1. Battery Energy Storage System Guidebook to develop system planning and inspection processes for local communities.

How to Apply

To receive the bulk storage incentive submit a Bulk Storage Incentive Application.

Upon application approval, NYSERDA will provide an award letter and issue a contract. The first application submitted by a developer for incentives must include evidence demonstrating prior experience developing bulk energy storage, wind, solar, or other electric power generation installations. Developers must continue to meet specific project development milestones defined in the program manual in order to continue reserving incentive funds

Contact Information

Questions can be e-mailed directly to energy.storage@nyserda.ny.gov.