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New York is looking for 1 GW of energy storage projects right now

New York Gov. Kathy Hochul has launched New York’s first bulk energy storage request for proposals (RFP), intended to procure 1 GW of bulk energy storage as part of New York’s 6-GW energy storage roadmap.

An energy storage project in Hubbardston, New York. (Credit: Greg M. Cooper/Borrego)

 

“Today’s action is another example of New York’s ongoing commitment to strengthening our grid, ensuring the state continues to have a more affordable and reliable electricity system now and well into the future,” Gov. Hochul said. “Safe and strategic deployment of energy storage will help drive economic development and reduce costs for New Yorkers.”

 

Administered by the New York State Energy Research and Development Authority (NYSERDA), through its Bulk Energy Storage Program, this competitive solicitation seeks to advance a range of energy storage technologies and timely progress toward procuring 3 GW of bulk energy storage over the three solicitations. Any NYSERDA-supported energy storage projects are contractually required to meet the new storage safety codes adopted last week into Uniform Code by the State Fire Prevention and Building Code Council, which reflect the work and recommendations from the New York State Inter-Agency Fire Safety Working Group (FSWG). While the newly adopted code will not take effect until January 1, 2026, NYSERDA has already integrated these recommendations into its residential, retail and bulk energy storage programs to ensure facilities are sited safely, that first responders have the necessary training, and that all sites have comprehensive emergency response plans.

 

“NYSERDA’s Bulk Energy Storage Program provides an opportunity to more than double the current amount of energy storage that has been deployed, contracted, and awarded statewide. This solicitation will further advance New York’s focus on grid reliability, peak reduction and affordability while meeting the demand for more storage to be safely installed across our state,” said Doreen M. Harris, NYSERDA President and CEO.

 

NYSERDA’s Bulk Energy Storage Program employs a novel Index Storage Credit (ISC) incentive, as established in the New York Public Service Commission (PSC) Order, modeled in part after the Renewable Energy Certificate (REC) and Offshore Wind Renewable Energy Credit (OREC) utilized in other NYSERDA programs. The ISC is a market-based mechanism that gives project owners greater revenue certainty while incentivizing them to participate in wholesale energy and capacity markets. ISCs will be created based on a project’s operational availability, and will represent 1 MWh of energy storage capacity that is operational and available to discharge on a given day; projects will be credited and compensated based on the operational availability they achieve in each month over the course of the 15- to 25-year contracts.

 

Entities interested in responding to this solicitation must complete an initial qualifying step for proposers to demonstrate program eligibility. Step One Eligibility Applications are due to NYSERDA by 3 p.m. ET on September 4, 2025. Once proposals are deemed eligible by NYSERDA, proposers will be invited to submit a “Step Two” bid proposal for project evaluation.

 

As noted above, NYSERDA supports robust safety measures for all projects and, as a result, will not pay for ISCs until the awarded and contracted projects are permitted, installed and operating and have passed their peer review process and quality assurance inspection — both key milestones to ensure that all projects are designed and constructed with New York’s best-in-class safety standards. In addition, all project proposers must include a comprehensive safety and security plan detailing how they will adhere to the Bulk Energy Storage Program Manual requirements.

 

Also, associated with this solicitation, NY Green Bank (NYGB), a division of NYSERDA and a specialized investment fund dedicated to bridging financial gaps in clean energy and renewable infrastructure markets in New York State, is prepared to support project developers and investors with a range of financing options in order to advance energy storage. Entities interested in applying for this financing can submit an application to NYGB RFP No. 1.

 

NYSERDA’s siting team also works closely with local governments to provide tailored education, technical assistance and model local laws. Through its clean energy siting resources, the siting team empowers communities with the tools and knowledge to make informed decisions and manage responsible clean energy development in host communities.

 

New York’s 6-GW Energy Storage Roadmap also authorizes funds for NYSERDA to support 200 MW of new residential-scale energy storage and 1,500 MW of new commercial and community-scale energy. Additionally, at least 35% of the benefits of these new energy storage projects will be allocated to disadvantaged communities.