Why Energy Storage
Energy Storage
Energy storage is a critical component to meeting New York’s decarbonization efforts. Storage allows clean generation from wind and solar to be available and allocated precisely where and when it is needed most. Storage allows us reduce reliance on “peak” generation, such as gas-fired plans to meet the highest winter or summer demand levels.
As part of the Climate Act, New York is committed to deploying 1,500 MW of energy storage by 2025 and 3,000 MW by 2030 to improve the overall efficiency of the grid, lower costs for consumers, and ensure resiliency.
Supporting national and local infrastructure
The main function of energy storage is to provide the Grid with artificial inertia. This is stored electricity that can be called upon to provide fast response for short-periods of time – 30 to 90 minutes.
The increased deployment of battery storage has enabled a greater uptake of renewable generation, including solar PV and wind power. In the longer-term, storage will help to further reduce the energy system’s operating cost, as it can optimize the role of generation, transmission, distribution and supply.
Battery storage is a complement to renewable generation, by absorbing and releasing energy to balance power generation with demand. A properly configured electricity storage facility can provide the New York Independent System Operator with the balancing services that are becoming more necessary as renewable generation increases variability in supply, and increased electrification increases the swings in demand.
If grid balancing is not done correctly, there can be inefficiencies that raise costs to customers and make the grid more vulnerable to periodic power outages.
The main benefits of storage are:
- the integration of more renewables (especially solar PV and wind) in the energy mix.
- storage will decrease the need to invest in new conventional generation capacity
- storage improves energy security by optimizing the supply and demand, thus reducing the need to import electricity via interconnectors.
- storage provides system stability during electricity outages by supplying energy at these times and reducing the financial costs of power outages.
- utilization of storage also means fewer and cheaper electricity transmission and distribution system upgrades are required.
- energy can be stored when prices are low and used on site when they are high to save consumers and businesses money on their bills. Alternatively, the stored energy can be sold.
- storage can provide ancillary services to the New York Independent System Operator at lower cost, lower carbon intensity than conventional thermal power plants.
The Benefits of Energy Storage
Healthy investment outlook
Battery storage capacity in New York is likely to heavily increase as we move towards operating a zero-carbon energy system. The New York Public Service Commission has directed New York’s six investor-owned utilities to hold competitive procurements of 350 MW of bulk energy storage projects, and has recommended wholesale market design improvements to enable storage resources to meet both wholesale and distribution system needs. By 2030, New York will have 3,000 MW of storage installed on the grid.