Utility Procurement
Bulk Storage Dispatch Rights Contracts
Under the New York State Public Service Commission’s Energy Storage Order, the six investor-owned utilities (IOU) in New York must issue an initial request for proposals (RFP) in 2019, and subsequent RFPs annually as necessary, to competitively procure bulk energy storage dispatch rights for up to seven-year terms. As described in the IOU implementation plans filed filed on February 11 and 12, 2019, these contracts will provide a fixed revenue stream to the developer. It will also provide the IOU with experience maximizing distribution and wholesale system benefits for their customers/ratepayers. NYSERDA will work with each IOU to provide incentive funding as required on contracted projects based on an economic evaluation of the RFP responses. The NYSERDA incentive will consider the bulk incentive levels in effect at that time and the lower cost of project capital resulting from a fixed utility revenue stream. The developer may not also apply for funding under the NYSERDA Bulk Storage Incentive Program, since any NYSERDA incentive will be provided through the IOU Dispatch Rights contract.
Utility Non-Wire Solutions
Non-wire solutions (NWS) , also known as non-wires alternatives, allow utilities to defer or avoid conventional infrastructure investments to procure distributed energy resources that lower costs and emissions while maintaining or improving grid reliability. Storage systems are a high-potential NWS that can effectively reduce demand and defer or avoid the need to invest in infrastructure upgrades. Current utility NWS opportunities are available on the Joint Utilities of New York page.