On Wednesday the Long Island Power Authority Board of Trustees approved two battery energy storage contracts in Suffolk County, New York that will provide much-needed reliability to the Long Island Power Authority (LIPA) grid.
If granted final approval from the Towns of Islip and Brookhaven, battery energy storage developer Key Capture Energy will build and operate a utility-scale lithium-iron-phosphate battery energy storage system (BESS) in Hauppauge, New York, and another in Shoreham, NY, both under long-term contracts with LIPA.
Here’s what we know about each BESS and how their construction affects ratepayers:
KCE NY 29 – Hauppauge, New York
The KCE NY 29 project in Hauppauge will sell LIPA 79 megawatts (MW) and 316 megawatt-hours (MWh) of capacity. A 12-foot-high barrier wall will be installed to serve as a sound barrier and landscaping will be added around the perimeter to further reduce the project’s visibility. KCE NY 29 will connect to the Kings Substation and is expected to be completed by 2028. Over its 20-year contract, the cost to the average LIPA residential ratepayer will be $0.19 per month, according to LIPA.
KCE NY 31 – Shoreham, New York
The KCE NY 31 project in Shoreham is being developed on a portion of the former Shoreham Nuclear Power Plant, which LIPA owns. LIPA will purchase a guaranteed 50 MW and 200 MWh of capacity from the project, which will connect to the Shoreham Substation and is expected to be completed by 2028. Over its 20-year contract, KCE NY 31’s cost to the average LIPA residential ratepayer will be $0.11 per month.
LIPA contends these BESS will serve as critical resources to meet its clean energy goals and the reliability needs for Long Island and the Rockaways.
“Energy storage is essential to delivering reliable and affordable power as we increasingly switch to renewable energy sources and electrify our buildings and transportation systems. Integrating storage in the electric grid, especially in areas with high energy demand, will allow clean energy to be available when and where it is most needed,” explained John Rhodes, acting chief executive officer of LIPA. “These projects are critically valuable for our electric grid and will be valuable additions to our power supply portfolio.”
These facilities will be especially critical, LIPA notes, as the needs of the local electric grid change to prepare for additional offshore wind generation and the retirements of existing fossil fuel peaking plants.
“The electric grid will need flexible solutions that can respond quickly when needed, given the intermittency of renewable generation, and discharge during peak demand hours to enhance reliability,” LIPA confirmed.
Securing storage with an eye on fire safety
Both Key Capture projects are executed under “Energy Storage Build-Own-Operate-Optional Transfer Agreements,” which gives LIPA the option to purchase the projects in the future.
New York has set a target of 70% of the state’s electricity being produced from renewable resources by 2030, with the additional goal of achieving a 100% carbon-free grid. Its Climate Act targets included a 3,000 MW statewide energy storage goal, which has since been expanded to 6,000 MW by the New York Public Service Commission. Through a 2021 Bulk Storage Request for Proposals, LIPA intends to meet its share of these goals by procuring approximately 175 MW of new bulk energy storage contracts.
The Key Capture storage systems will use lithium-iron-phosphate batteries with a discharge duration of four hours, common for such installations. Fires at smaller battery storage facilities incorporating lithium batteries on Long Island and New York State have highlighted the need to adequately address fire safety, including measures to prevent and respond to battery storage fires. Last year, to address these incidents, Governor Kathy Hochul announced the creation of an Inter-Agency Fire Safety Working Group to ensure the safety and security of energy storage. Key Capture says these two LIPA projects have incorporated all the Working Group’s recommendations to date.
Key Capture Energy and PSEG Long Island, LIPA’s service provider, conducted public outreach for both projects, including with local fire marshals and hazmat coordinators. The contracts will now be sent to the New York State Attorney General and Office of State Comptroller for approval before state and local permits can be issued.
Originally published in Renewable Energy World.
