New York State Department of Financial Services

06/12/2024 | Press release | Distributed by Public on 06/12/2024 09:42

Governor Hochul Announces Over $5 Million is Now Available for Long Duration Energy Storage Projects

June 12, 2024
Albany, NY

Governor Hochul Announces Over $5 Million is Now Available for Long Duration Energy Storage Projects

Governor Hochul Announces Over $5 Million is Now Available for Long Duration Energy Storage Projects

Funding Advances Energy Storage Solutions That Help Harness and Provide Stored Renewable Energy to New York's Electric Grid

Supports Climate Leadership and Community Protection Act Goal to Install 3,000 Megawatts of Energy Storage By 2030

Governor Kathy Hochul today announced over $5 million is now available for long duration energy storage projects through New York State's Renewable Optimization and Energy Storage Innovation Program. This funding will advance the development and demonstration of scalable innovative long duration energy storage (LDES) solutions that harness and provide stored renewable energy to the State's electric grid, helping to reduce harmful emissions from reliance on fossil fuels. Today's announcement supports the current Climate Leadership and Community Protection Act (Climate Act) goal to install 3,000 megawatts of energy storage by 2030 while facilitating further development to 6,000 megawatts.

"As we continue to build a clean energy future, we are making investments that will keep New York on the cutting edge of the latest energy storage technologies," Governor Hochul said. "This funding will spur innovation, ultimately helping to reduce our reliance on fossil fuels and make progress towards our clean energy goals."

Administered by the New York State Energy Research and Development Authority (NYSERDA), this funding is being made available through a competitive solicitation for projects that will support innovative and under-utilized long duration energy storage solutions, devices, software, controls, and other complementary technologies which are yet to be commercialized. Proposals are required to further product development and demonstration projects in energy storage that are 10 to over 100 hours in duration at rated power and should advance and field test electrical, chemical, mechanical, and thermal to electric long duration storage solution technologies that will address cost, performance, and renewable integration challenges such as grid congestion, hosting capacity constraints, and lithium-ion siting limitations in New York City.

Proposals will be accepted through 3:00 p.m. on September 24, 2024. More information about this solicitation is available on NYSERDA'S website.

NYSERDA President and CEO Doreen M. Harris said, "Through this latest round of funding, New York is continuing its commitment to fostering technology innovation that advances the equitable transition to a zero-emission electric grid. Investing in long duration energy storage solutions can help replace fossil fuel peaker plants while incentivizing clean energy development that will tangibly improve air quality and mitigate the future impacts of climate change for traditionally overburdened communities."

Long duration electrical energy storage solutions will become critical in times of reduced renewable generation as well as helping to meet peak demands as the State transitions to a zero emissions economy across all sectors. This technology and product development seeks to support the transition away from fossil fuel generated peaker plants, which are disproportionately sited in or near disadvantaged communities and are potential sources of particulate matter and other airborne pollutants. The projects selected will support the development of LDES solutions paired with renewable energy generation in disadvantaged communities, resulting in reduced emissions, improved health outcomes for residents, and reduced climate related impacts and grid constraints.

Today's announcement builds on the more than $30 million awarded in 2022 and 2023 by NYSERDA to nine projects through the first two rounds of the program. These projects are advancing a variety of technologies including hydrogen, zinc hybrid and iron-air battery technologies, nuclear-hydrogen long duration energy storage, and a hydroelectric storage system that integrates directly with offshore wind development in support of grid resiliency and reduced reliance on fossil fuel plants. Awards from the third round are expected to be announced later this summer.

This funding is offered through NYSERDA's Renewable Optimization and Energy Storage Innovation Program and builds on New York State's investments in research, development, and commercialization to support innovators that are accelerating the low emissions and carbon sequestering technologies needed to meet the State's goal for economy-wide carbon neutrality. NYSERDA's Innovation program is deploying $800 million over 10 years as direct investments via grants and wrap-around commercialization support. More than $680 million in private investments and $200 million in project finance capital have been enabled, and more than 450 innovative clean energy products have been commercialized because of NYSERDA's technology and business development investments, including LED lighting systems, home appliances, longer-lasting batteries, and more efficient heating-and-cooling systems.

This NYSERDA program is funded through the State's 10-year, $6 billion Clean Energy Fund. More information about this funding is available on NYSERDA's website.

New York State's Nation-Leading Climate Plan
New York State's climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation's most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts - including the New York Cap-and-Invest program (NYCI) and other complementary policies - to reduce greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050 from 1990 levels. New York is also on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York's unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments. These and other investments are supporting more than 170,000 jobs in New York's clean energy sector as of 2022 and over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and light-duty trucks sold in the State be zero emission by 2035.Partnerships are continuing to advance New York's climate action with more than 400 registered and more than 130 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State's largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.

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