Last week, New York Governor Andrew M. Cuomo announced that the New York State Public Service Commission approved two initiatives to increase New York’s energy efficiency and energy storage targets.
The new energy efficiency target for investor-owned utilities will more than double utility energy efficiency progress by 2025, reducing the state’s energy consumption 185 trillion British thermal units (TBtu) of cumulative annual site energy consumption by 2025, which the state commission said is the equivalent of fueling and powering 1.8 million homes.
The Commission order adopts 31 TBtu of additional site energy reduction by the state’s utilities, above existing utility efficiency goals and toward the achievement of the 2025 target. This goal is inclusive of a subsidiary annual three percent reduction in electricity sales by 2025 and 5 TBtu of savings from the installation of heat pumps, which will help further reduce emissions from the heating and cooling of buildings in a cost-effective way. The commission has required a minimum of 20 percent of any additional levels of public investment in energy efficiency to be dedicated to the low- and moderate-income sector, helping to ensure that all New Yorkers have equal access to clean, affordable energy.
The energy storage initiative sets New York on a trajectory to achieve 1,500 MW of storage by 2025, enough electricity to power 1.2 million homes, and up to 3,000 MW by 2030. The commission said it adopted a comprehensive strategy to address barriers that have been impeding energy storage technologies from competing in the energy marketplace.
When implemented, the strategy adopted by the Commission today will establish a critical foundation for the emergence of this clean-tech industry across the state and support New York’s goal to create 30,000 jobs in this industry.
Renewable Energy Access
To further stimulate energy storage deployment across the state and spur private sector investment, earlier this week, New York Power Authority (NYPA) announced it will invest $250 million over the next five years to accelerate the flexibility of the electric grid to give New Yorkers greater access to renewable energy resources such as wind and solar power.
This multi-pronged, collaborative effort by NYPA will harness the abilities of third-party providers to address key market and financial barriers, and accelerate implementation of 150 MW of grid flexibility projects and decrease market risk.
Specifically, the commission order authorizes a $310 million market acceleration bridge incentive to be administered by NYSERDA, in addition to $40 million announced in November for pairing storage with PV projects, and directs NYSERDA to file a market acceleration bridge incentive implementation plan. It also directs the state’s six major electric utilities to hold competitive procurements for 350 MW of bulk-sited energy storage systems.