Grid-scale energy storage is coming to New York City.
With the looming closure of the 2-gigawatt Indian Point nuclear reactor, New York City utility Con Edison has submitted a proposal to furnish 100 megawatts of load reduction measures that include energy storage, demand response and energy efficiency.
Con Edison and NYSERDA have released some of the initial details about the program, noting that they are subject to change.
The new incentives for energy systems that provide summer on-peak demand reduction are $2,600 per kilowatt for thermal storage and $2,100 per kilowatt for battery storage systems, with bonus incentives for projects larger than 500 kilowatts. Incentives will be capped at 50 percent of the project cost.
The proposed New York City incentive bears some resemblance to California’s Self-Generation Incentive Program, a subsidy established by California’s PUC to support existing and emerging distributed energy resources, which provides one-time, upfront rebates for distributed energy systems installed on the customer’s side of the utility meter. In California, qualifying technologies include wind turbines, fuel cells, and associated energy storage systems
Large grid-scale energy storage has moved from its demonstration and pilot program phase to its early commercialization phase, and California seems to be setting the pace.
Last June, the PUC asked California’s big three investor-owned utilities to procure 1.3 gigawatts of energy storage by 2020, along with setting market mechanisms to launch the procurement process.
Source: Greentech Media