Developers were advised to closely monitor the program details of New York’s expanded plan to grow its energy storage supply to 6 GW by 2030, in a recent webinar hosted by SYSO Technologies.

SYSO told developers they can leverage the new storage program to their advantage by ensuring project maturity and understanding the incentives and carve-outs written into the program to position the project for success. Those on the webinar panel included Alex Worsley, principal at Stack Energy Consulting, and Aaron Jenkins, senior sales engineer at SYSO, who said New York’s updated storage roadmap includes substantial funding, new incentives, and a focus on equity, fire safety, and environmental justice.

The New York Public Service Commission (PSC) set its new storage target in June 2023, with a new roadmap outlining the path to 6 GW by addressing energy storage across three areas: bulk storage, retail and residential.

A 3 GW target will be achieved through annual procurements over three years, starting in 2025, according to a presentation summarizing the program given by Worsley. These procurements aim to incentivize long-duration energy storage projects, with carve-outs for systems capable of operating for more than eight hours.

Under the program rules, downstate areas like New York City, Long Island, and Westchester County will be prioritized, addressing both reliability and environmental justice, Worsley said.

An additional 1.5 GW will come from projects connected to the distribution system. These will include behind-the-meter and community energy storage initiatives. Worsley said a significant aspect of the retail program is the Inclusive Storage Incentive (ISI), targeting disadvantaged communities by supporting storage at key facilities.

Also new in the roadmap is a statewide residential storage program, allocating 200 MW with a focus on equitable access and reducing reliance on fossil fuel peaking plants, Worsley said.

The roadmap builds on the megawatt block incentive structure, where projects receive fixed funding based on their participation tier. Newly established blocks will open in New York City, Con Edison Westchester, and other regions, with specific allocations to maximize uptake. For example, 50% of the 1.5 GW retail incentives are earmarked for New York City, reflecting the demand and environmental needs of a more densely populated area.

The ISI program dedicates 60 MW specifically to projects located in disadvantaged communities, aimed at ensuring equitable distribution of clean energy, Worsley said.

Recent high-profile battery storage fires have prompted the state to take another look at safety. A multi-agency task force is revising fire codes to align with best practices, with updated regulations expected by 2025.

Bulk energy storage projects will receive support through contracts like the Index Storage Credit (ISC). These contracts aim to guarantee revenue by bridging gaps between market earnings and project costs. NYSERDA, plans to procure approximately 1 GW per year over three years, with a potential for increased procurement based on project demand and attrition, according to SYSO’s presentation.

SYSO said developers can give themselves a leg up in the new program by submitting feedback on NYSERDA’s plan.

Those listening in were also told their projects may have a better shot in the competitive process if developers ensure they are as mature as possible when submitted. The more developed a project is, the more points it will receive in the non-price evaluation criteria, SYSO said.

Likewise, developers can evaluate their project’s ability to meet the geographic carve-outs for New York’s earmarked downstate zones.

SYSO said companies can also consider developing long-duration storage projects (over 8 hours) to harness the 20% carve-out for these resources, which are seen as valuable for grid reliability.

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