Energy storage can produce $315 million in savings for customers over 5 years
(Albany, NEW YORK, May 8, 2017) – A new study released by the New York Battery and Energy Storage Technology Consortium (NY-BEST), in partnership with Strategen Consulting, shows that energy storage, along with a portfolio of other clean energy sources, can replace the 2,000 megawatt Indian Point Nuclear Power Plant, produce savings for customers and reduce greenhouse gas emissions.
The study, performed by Strategen Consulting, illustrates that 450 megawatts of energy storage -- in combination with additional wind, solar, and energy efficiency -- can help fill the gaps created by the closure of Indian Point while saving New Yorkers money. The analysis projects an estimated $315 million in savings from energy storage over a five-year period to customers when compared to other more traditional power replacement options.
“As plans are being developed to replace the 2,000 megawatts of power provided by Indian Point, New York has an opportunity to eschew the conventional fossil-fueled energy sources of the past and embrace clean renewable energy technologies, coupled with energy storage, to meet our energy needs, achieve our environmental goals and grow the number of high-tech jobs across the state,” said Dr. William Acker, Executive Director of NY-BEST.
In January 2017, New York State Governor Andrew Cuomo announced that under a settlement with Entergy, the Indian Point Nuclear Power Plant will close by April 2021. The plant, located 25 miles north of New York City, provides 2,000 megawatts of energy to the metro New York area. Under Governor Cuomo, New York State has also established a Clean Energy Standard requiring that 50 percent of the State’s energy come from renewable energy sources by 2030 and has committed to reducing greenhouse gas emissions by 40 percent by 2030 and 80 percent by 2050.
"New York's situation closely mirrors California's recent experience when a major nuclear plant was retired near Los Angeles. Rather than relying exclusively on traditional replacement options like natural gas, California turned to clean energy resources such as energy storage. New York has the opportunity to do the same and benefit from another state's experience," said Ed Burgess, Senior Manager at Strategen Consulting.
Energy storage, when combined with renewable energy sources like wind and solar power, provides flexible, reliable power that produces no greenhouse gas emissions. Pairing storage with renewable energy allows the energy that is generated when the sun is shining and the wind is blowing to be stored for use at a later time. In this way, storage helps balance supply and demand, reduces pressure on the electric grid at peak demand times, and makes the system more flexible and resilient. Energy storage can also help reduce harmful air pollutants from peaking power plants which contribute to asthma and other negative health impacts.
The Strategen study illustrates that a clean mix of replacement options, combined with storage, can fulfill New York’s resource needs, replacing retired units efficiently, and at a low cost while still achieving New York’s greenhouse gas emissions and other goals.
Other states facing similar issues to New York’s have turned to energy storage. California in response to the closure of the San Onofre nuclear power plant and power shortages caused by the natural gas leak in Aliso Canyon, mandated the use of innovative clean energy solutions, including energy storage projects.
The energy storage sector is growing rapidly. A recent report by the New York State Energy Research and Development Authority found that the number of jobs in New York’s storage industry grew by 1,000 between 2012 and 2015, a 30 percent increase, and job growth could grow to nearly 27,000 by 2030.
The Strategen Consulting Study can be viewed here: https://www.strategen.com/new-blog/2017/5/8/indian-point-replacement-options
The New York Battery and Energy Storage Technology (NY-BEST) Consortium is a non-profit corporation and industry-led consortium with more than 150 organizational members. NY-BEST’s mission is to catalyze and grow the energy storage industry and establish New York State as a global leader in the energy storage industry. Visit us on the web at www.ny-best.org
About Strategen Consulting
Strategen Consulting is a strategic advisory firm that provides insight to utilities, public sector leaders, research institutions, and global corporations, helping them to develop impactful and sustainable clean energy strategies. Strategen specializes in providing independent analysis and regulatory support to help clients navigate some of the energy sector’s most pressing issues.
Contact: Denise Sheehan, NY-BEST
Phone: (518)463-8644 (office), (518)429-6924 (mobile)