New York PSC Greenlights Energy Storage Implementation Plan to Enhance Renewable Integration and Reduce Costs

PSC Approves Energy Storage Implementation Plan

February 13, 2025 | Albany

The New York State Public Service Commission (PSC) has recently approved the implementation plan for the retail and residential energy storage program submitted by the New York State Energy Research and Development Authority (NYSERDA). This decision allows resources participating in the New York Independent System Operator (NYISO) distributed energy resources program to qualify for the retail storage incentive.

“Energy storage is crucial as New York works to decarbonize our electric grid, manage increased energy loads, and optimize the integration and use of clean, renewable energy,” stated Commission Chair Rory M. Christian. “Today’s decision advances our landmark energy storage program.”

In June 2024, Governor Hochul announced that the PSC had approved a new Energy Storage Roadmap aimed at achieving a leading six gigawatts (GW) of energy storage by 2030, which equates to approximately 20 percent of New York State’s peak electricity load. This roadmap provides a comprehensive set of recommendations designed to expand New York’s energy storage programs in a cost-effective manner, thereby promoting rapid growth in renewable energy and enhancing grid reliability and customer resilience.

The six GW target established in the Roadmap, which the PSC adopted in its 2024 Energy Storage Order, was allocated to ensure widespread adoption across retail, residential, and bulk energy storage sectors. Specifically, the 2024 Energy Storage Order set a target of deploying 1,500 megawatts (MW) of retail energy storage and 200 MW of residential energy storage by 2030, directing NYSERDA to file an Implementation Plan. The PSC has now approved the Implementation Plan for the retail and residential components, while the Bulk Energy Storage component is still under review.

The Roadmap is projected to facilitate the deployment of storage solutions that could reduce future statewide electric system costs by nearly $2 billion, in addition to providing significant public health benefits through decreased exposure to harmful fossil fuel pollutants.

This initiative aims to procure an additional 4.7 gigawatts of new storage projects across bulk, retail, and residential storage sectors in New York State. When combined with the existing 1.3 gigawatts of energy storage already under contract and moving toward commercial operation, the state is well-positioned to meet its six-gigawatt goal by 2030.

Energy storage is essential in supporting New York’s transition to a zero-emission electric grid by facilitating the integration of large volumes of renewable energy, smoothing generation, minimizing curtailment, and directing renewable generation to areas of highest demand. As of April 1, 2024, New York has awarded approximately $200 million to support about 396 megawatts of operational energy storage in the state, contributing to the existing total of 1.3 gigawatts. An additional 581 megawatts of energy storage are under contract and progressing toward commercial operation, with NYSERDA continuing to offer incentives for 332 MW under the current program.

As New York electrifies its buildings, transportation, and industrial sectors, accelerating energy storage deployment will provide a flexible solution to meet these growing demands on the grid while supporting the retirement of fossil fuel generators nearing the end of their operational life.

New York State’s Climate Agenda

New York’s climate agenda emphasizes a just and affordable transition to a clean energy economy, aimed at creating sustainable jobs, fostering economic growth through green investments, and ensuring that at least 35 percent of the benefits reach disadvantaged communities. The state is actively pursuing a range of initiatives to achieve an emissions-free economy by 2050 across the energy, buildings, transportation, and waste sectors.

To access today’s decision, visit the Commission Documents section of the PSC’s website at www.dps.ny.gov and enter Case Number 18-E-0130 in the search box. Many libraries offer free internet access for this purpose. Commission documents can also be obtained from the Commission’s Files Office located on the 14th floor of Three Empire State Plaza, Albany, NY 12223 (518-474-2500). For those who may have difficulty understanding English, free language assistance services are available by calling 1-800-342-3377 regarding this press release.