Bulk Storage Incentives

NYSERDA is providing incentives that can help accelerate deployment of bulk energy storage projects that provide wholesale market energy, ancillary services, and/or capacity services. Developers can choose one of the three paths to accelerate project deployment, depending on which is best suited to their specific use case and business model:

  1. NYSERDA incentives for eligible projects through a declining block incentive
  2. Investor-owned utility bulk dispatch rights contract
  3. Renewable Energy Certificate bid for an energy storage system paired with renewable energy through NYSERDA’s Large-scale Renewables program

Incentive Structure

Incentives are available at a fixed amount per usable kWh of installed storage capacity for projects over 5 megawatts. Projects providing wholesale capacity services receive the stated incentive rate. Projects providing only energy arbitrage or ancillary servicesancillary services –
a NYISO term, refers to a range of services that enable the grid to function properly.
receive 75% of the stated incentive rate. There is no maximum project size, however the total NYSERDA incentive will not exceed $25 million on a single project. Incentives are secured by the developer at a fixed incentive rate at the time a completed application is submitted and approved by NYSERDA.

Projects 20 MW and Less in Total Size

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

Projects Exceeding 20 MW in Total Size

First NYISO Class Year to Begin After March 11, 2019  
(estimated to begin in 2019)
Second NYISO Class Year to Begin After March 11, 2019  
(estimated to begin in 2021-22)
$85/kWh $75/kWh

The chart below shows the remaining available funds statewide, excluding Long Island, for the Bulk Storage Incentives, total funds committed, MW, and MWH committed. The chart is updated as these values change.

Total $ committed  Total $ available  MW committed MWH committed 
$10,161,250 $139,838,750 40 96.5

Who can Apply

  • 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 the Con Edison service territory are not eligible. Developers with projects in the Con Edison service territory must apply under Con Edison’s Bulk Storage Dispatch Rights RFPLink opens in new window - close new window to return to this page.
  • 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 and expects a decision by Fall 2019

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 NYISO’s OATT 22 Attachment P – Transmission Interconnection ProceduresLink opens in new window - close new window to return to this page.) 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

How it Works

To receive the bulk storage incentive, you must submit an application onlineLink opens in new window - close new window to return to this page.. After approving, 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. Details on program requirements can be found in the Program Manual [PDF].

Resource Documents

Contact

For additional information on NYSERDA’s energy storage incentives email us at energystorage@nyserda.ny.gov.