Dive Brief:
- New York State Electric and Gas and Rochester Gas and Electric, both subsidiaries of Avangrid, released a revised bidding plan that’s part of a process that began in 2018 when then-New York Gov. Andrew Cuomo called for the deployment of energy storage. The state wants 6 GW of storage by 2030.
- The procurement process was supposed to begin in 2019, but was delayed several times as utility companies expressed uncertainty about the revenue that energy storage would generate.
- NYSEG and RG&E on Friday filed a revised plan for 20 MW of energy storage. They are two of six utility companies that failed to come up with 350 MW of storage dispatch after two rounds of bidding. So far, the six utilities have only secured 120 MW of storage projects. The Avangrid subsidiaries haven’t secured any.
Dive Insight:
Under Avangrid’s revised plan, which needs regulatory approval, the utility will secure scheduling rights for up to 15 years and will give preference to “high value” energy storage locations.
The revised plan anticipates that storage projects will provide power for a four-hour duration.
Storage companies will need to meet several criteria before the utility will accept their bids, including developing a detailed storage plan and acquiring the necessary permits. Bidders will be responsible for all initial financing under the revised plan.
The Avangrid subsidiaries submitted a plan last year, but the New York Public Service Commission ordered the companies to revise and strengthen their proposal. A PSC spokesperson declined to comment other than to say the agency is reviewing Avangrid’s filing.
An Avangrid representative did not respond to a message seeking comment.
The process has been delayed several times since Cuomo’s call for more energy storage, and the PSC has extended its deadlines several times, most recently on March 16, when the commission offered an extension to the Avangrid subsidiaries and four other utilities. The agency moved the required in-service date for energy storage resources to Dec. 31, 2028, from Dec. 31, 2025.
And on Thursday, Central Hudson Gas and Electric asked for a six-month extension on the deadline for its own implementation plan that was due last month.
“Central Hudson continues to negotiate a dispatch rights contract with an energy storage developer pursuant to Central Hudson’s currently effective implementation plan, which is expected to be resolved within the requested six-month extension period,” the company said in its request.
The PSC has not filed a response to the utility’s request.
Despite the delays, industry representatives believe the state can meet its energy storage goals.
“There is a significant amount of investment in the energy storage space,” said Richard Bratton, director of markets and regulatory affairs for the Independent Power Producers of New York. “It's a growing market.”
