Governor Paterson Announces $88 Million in Federal Funding for Four New York Advanced Energy Projects
November 27, 2009
Governor David A. Paterson today announced that four New York advanced-energy projects will receive more than $88 million in funding to support Smart Grid demonstration and energy storage projects through the American Recovery and Reinvestment Act. These projects were competitively selected with 28 other projects funded nationwide to help build a smarter, more efficient and more resilient electrical grid.
New York strengthened the applications by pledging a 10 percent match or $8.8 million from New York’s Innovation Economy Matching Grants Program. In total, the awards of $620 million announced Tuesday by U.S. Secretary of Energy Steven Chu will be leveraged with $1 billion in funds from the private sector to support more than $1.6 billion in total Smart Grid projects nationally.
“The fact that our State is well represented among the states in receiving these funds is testament to New York’s position as leader in the New Economy. Smart Grid and energy storage efforts are critical pieces of my ‘45 by 15’ energy efficiency and renewable energy goals, and continue our path to creating a stronger clean energy economy and a cleaner environment for all New Yorkers,” Governor Paterson said. “Three State authorities, including NYSERDA, LIPA and NYPA, are actively involved in these projects, and we are proud of the recognition they have received. I applaud President Obama, Energy Secretary Steven Chu and our entire Congressional Delegation for their work to secure these critical funds that promote economic recovery, development and environmental stewardship.”
The funding awards are divided into two topic areas. In the first group, New York received three out of 16 awards nationwide to support fully integrated, regional Smart Grid demonstrations. These included:
- Secure Interoperable Open Smart Grid Demonstration in New York and New Jersey ($45,388,291) - Consolidated Edison Company of New York, Inc., will demonstrate a scalable, cost-effective Smart Grid prototype that promotes cyber security, reduces electricity demand and peak energy use, and increases reliability and energy efficiency. The system will include renewable energy generation, grid monitoring, electric vehicle charging stations, transmission automation, and consumer systems that will help expand the use of renewable energy and lead to greater consumer participation in the electricity system.
- Long Island Smart Energy Corridor ($12,496,047): The Long Island Power Authority will partner with two branches of the State University of New York (SUNY) to create a Smart Energy Corridor along the Route 110 business corridor, involving 800 customers. The project will demonstrate the integration of a suite of Smart Grid technologies, such as smart meters, distribution automation, distributed energy resources, and electric vehicle charging stations. The project also will include testing cyber security systems, identifying the optimal combination of features to encourage consumer participation, and educating the public about the tools and techniques available with the Smart Grid.
- Evaluation of Instrumentation and Dynamic Thermal Ratings for Overhead Lines ($720,000): The New York Power Authority (NYPA) will demonstrate the effects that Dynamic Thermal Circuit Ratings (DTCR) technology can have on areas of the New York State transmission system where there is abundant wind generation potential, including Massena (St. Lawrence County) and Chateaugay (Franklin County). This project could result in a five to 15 percent increase in transmission line capacity to allow for more wind power, deferring millions of dollars in capital expenditures on transmission projects an enabling improved situational awareness for grid operators.
In the second group, New York received one out of 16 awards nationwide to help fund utility-scale energy storage projects that will enhance the reliability and efficiency of the grid, while reducing the need for new electricity plants. In this group, the New York State Electric & Gas Corporation (NYSEG) received an award of $29,561,142 to demonstrate an advanced 150 MW Compressed Air Energy Storage (CAES) facility that utilizes an underground salt cavern to store compressed air. This demonstration site at Watkins Glen in Schuyler County, combined with an innovative Smart Grid control system will improve grid reliability and provide a resource to accept wind generated power without timing constraints. The New York State Energy Research and Development Authority (NYSERDA) supported the project initially with a $200,000 feasibility study and then a $1 million contribution for the demonstration project.
Senator Kirsten Gillibrand said: “This is a great investment for New York. These federal dollars will help create more clean, homegrown sources of energy right here in New York, make us more energy independent, reduce our emissions and improve our environment, while helping to rebuild our economy. I will continue working with Governor Paterson, Senator Schumer and our entire Congressional Delegation to make sure New York gets its fair share from the federal government.”
Congressman Steve Israel said: “Back in May, Kevin Law and I announced a plan to bring federal dollars to Long Island so the bustling Route 110 corridor could be outfitted with the latest Smart Grid technologies. Today, we learned that our plan worked and LIPA will receive nearly $12.5 million to work with SUNY and bring Smart Grid efficiency to commercial, industrial and residential customers along Route 110. With this demonstration project, we will continue to lead the way as a green energy corridor, bringing the latest clean energy technologies to Long Islanders so we can all lower our utility bills and reduce our dependence on foreign oil.”
Senate Majority Conference Leader John L. Sampson said: “The Senate Majority has passed several bills that to move New York to a greener and more energy efficient economy. I applaud President Obama, U.S. Secretary of Energy Steven Chu, and Governor Paterson for their leadership in ensuring New York State and the nation are leaders in the new energy economy, and I am confident the selected projects are smart investments that will create jobs and improve our economy.”
NYS Smart Grid Consortium Chairman Robert Catell said: “The breadth and diversity of the smart grid projects supported here in New York is quite unique. The Consortium has fostered collaboration among all key smart grid stakeholders and I am excited to work with all of our statewide members to maximize the collective value of these projects to benefit all consumers.”
NYSERDA President and CEO Francis J. Murray, who also serves as Vice Chair of the New York State Smart Grid Consortium said: “By advancing these cutting edge initiatives, this funding will not only further the development of a Smart Grid in New York State, but will demonstrate the potential for creating a more efficient grid and improved energy storage for the rest of the nation. The federal government’s support is absolutely essential in helping New York achieve Governor Paterson’s ambitious goals for creating a stronger economy and a more secure energy future.”
New York Power Authority President and Chief Executive Officer Richard M. Kessel said: “We’re very pleased that NYPA has been awarded a Smart Grid Regional Demonstration grant through the American Recovery and Reinvestment Act. The grant will allow us to study how we can increase the ability of NYPA’s transmission system to deliver wind-generated power more efficiently, which is part of our effort to achieve Governor Paterson’s goal of having 30 percent of the state’s power supply derived from renewable energy resources by 2015.”
LIPA President and CEO Kevin S. Law said: “This is a great day for all Long Islanders; we applaud President Obama, Secretary Chu, Governor Paterson and Congressman Israel as well as Senators Schumer and Gillibrand and our entire congressional delegation for the recognition and support for the Smart Energy Corridor project. The Smart Energy Corridor project is consistent with Governor Paterson’s 45 x 15 plan and will help to modernize our electric system, reduce energy costs and stimulate the local economy with the creation of new clean energy jobs.”
Garry Brown, Chairman of the New York State Public Service Commission, said: “We are very pleased New York won such a large share of these highly competitive federal funds. The projects that will now get underway will help speed creation of a more technologically advanced electric grid and new energy-related innovations. The announcement today moves us closer toward attaining Governor Paterson’s laudable goal of creating a clean energy economy and a host of new clean energy jobs in New York.”
Michael Conroy, Senior Vice President and Chief Operating Officer of NYSEG and Rochester Gas & Electric, said: “We are extremely pleased that the U.S. Department of Energy has recognized the merits of our proposed Compressed Air Energy Storage demonstration project and has chosen to award funding to the project. We look forward to continuing to work to make this project a reality.”
Last Updated: 11/26/2012