The Summer is off to a busy start and we have a few important policy updates to share with members:
- Con Edison Storage RFP – The final version of the Con Edison bulk procurement request for proposal was released on July 15, 2019. In general, the RFP has not changed significantly from the draft version. The first major date in the RFP process is the deadline for submitting qualifications. The deadline for qualifications is August 1, 2019 at 5 PM. Refer to Appendix A for more information on this step. Final submissions are due November 1, 2019 at 5 PM. Do not hesitate to reach out to the NY-BEST Team if you are planning to respond to this RFP, and we can provide support around the process, rules, and deadlines associated with the RFP.
- Long Island Updates
- Long Island Energy Storage Incentive Program
NYSERDA recently announced that incentives for retail (<5 MW, distribution connected) and residential energy storage are now available on Long Island. The incentive levels in Long Island start at $250/kWh (for both retail and residential), with a step down to $200/kWh for the residential program after 10 MWh has been deployed. Of the $53 million in RGGI Funds that have been earmarked for Long Island storage incentives, $14.9 million has been allocated to support this program. The remaining funds will be allocated at a later date, with a portion expected to be used for a bulk storage incentive.
- Long Island Tariff Changes
- On July 24, 2019 the Long Island Power Authority Board will be voting on proposed tariff changes. The most important, for the energy storage industry, is the proposal to make standalone energy storage systems eligible for VDER compensation under the Long Island program. The changes will simplify the process for building VDER-based projects in Long Island, by aligning the program with compensation in the rest of the state.
- The DLM Tariff in Long Island, designed to accompany the residential storage incentive, can provide revenue certainty for behind-the-meter (BTM) projects. This program is an expansion of the existing CSRP/DLRP demand response programs on Long Island, and the major change is that compensation is locked in at the current demand response rate for 10 years at the time of registration. This contracted revenue stream provides more certainty to customers and financiers, improving the economic proposition for BTM energy storage projects.
- PSEG-Long Island Utility 2.0 - 2019 Annual Update – PSEG Long Island has issued the Annual Update to its Utility 2.0 Long Range Plan. PSEG-LI continues to identify energy storage as a tool in modernizing Long Island’s grid. The long-range plan includes several different programs to test the capabilities of energy storage and/or speed the deployment of energy storage in constrained areas of the grid. Comments on the Update are due by August 30, 2019.
- Peaker Study Released
The Department of Public Service released the unit‐by‐unit “Peaker study” as required by the Public Service Commission as part of the Commission’s Energy Storage order. The study was intended to examine which downstate peaking power plant generating units are potential candidates for repowering or replacement with storage. DPS Staff, working with NYSERDA, LIPA, NYISO, DEC, Con Edison, and consulting firm Energy and Environmental Economics, Inc. (E3) prepared the study.
The study examined two potential paths for peaking unit repowering or replacement:
- the potential to fully replace the historical output of peaking units with energy storage or energy storage paired with solar; and
- the ability of energy storage or energy storage paired with solar photovoltaic to bring peaking facilities potentially impacted by the DEC’s proposed NOx regulations for Simple Cycle and Regenerative Combustion Turbines into compliance.
The study relied on historical 2013 hourly operational and emissions data for the approximately 4,500 MW of affected peaking units to examine the technical feasibility of energy storage or energy storage paired with solar providing equivalent historical generation of the peaking units. (Peaker operational and emissions data from 2013 was chosen because it reflects the peak NYISO demand year.)
The study found the following:
- At least 275 MW of peaking units were found to be potential candidates for replacement with 6‐hour energy storage sized to the maximum 2013 output of each peaking unit.
- Over 500 MW of peaking units are potential candidates for replacement when using 8‐hour duration storage.
- 864 MW of peaking units could potentially be brought into compliance with the NOx limits with stand-alone 4-hour storage used to hybridize peaking units
- Pairing solar with storage could result in 1,804 MW of peaking units being candidates for replacement or hybridization with 6‐hour energy storage
NY-BEST has several concerns with the study and is working with members to prepare comments. We have heard from several members raising concerns and questions about the study’s assumptions and findings. Please reach out to us with your feedback.
- New York State Uniform Fire Prevention and Building Code: 2019 Energy Storage System Supplement
A supplement to the New York State Uniform Fire Prevention and building code was adopted as an emergency rule on July 1, 2019. Consistent with its status as an emergency rule, this rule will expire in 90 days, and the rule making process to adopt a final rule is now underway with the public comment period ending on September 21st, 2019. Click here to access the emergency rule, and find more information on the implementation process for a final rule. All input on the proposed rule should be directed to Jeffrey Hinderliter, at email@example.com. NYSERDA is hosting a webinar on the Building Code update on July 31, 2019 at 5 PM ET. For those unable to attend, we’ve confirmed with NYSERDA that the webinar will be recorded and posted on NYSERDA’s website at a later date. Register at this link.
- Pilot DER Data Platform – Per the PSC’s Energy Storage Deployment Order, DPS and NYSERDA staff are moving forward with the development of a Pilot Distributed Energy Resources Data Platform. Staff have selected Orange and Rockland Utilities as the pilot’s participating utility and Trove Predictive Data Science, LLC (Trove) as the contractor for the Pilot DER Data Platform project. Staff and Trove will be doing outreach to DER developers to evaluate functionality and usefulness of Pilot Platform capabilities and in late Fall will host Pilot Platform testing and workshops. Pilot DER Platform is expected to be operational by December 31, 2019.
- NYISO Meeting on Buyer Side Mitigation
Following request from NY-BEST, NYISO staff have scheduled an Information Session for Friday, 7/26 10 AM – 2 PM ET to review Buyer Side Mitigation, including its application to energy storage projects. We encourage those of you who are interested in participating in NYISO markets to participate in this meeting. If you plan to attend in person, you must RSVP to the NYISO.