New York’s Energy Storage Incentive Could Spur Deployment of 1.8GWh

Energy storage companies now can apply for $280 million in incentives allocated by New York’s state government. Gov. Andrew Cuomo made energy storage a key pillar of his strategy to secure 100 percent carbon-free electricity by 2040, because it can replace fossil-fueled plants to deliver power on demand. So far, grid battery projects in the state have appeared as pilots or one-offs; a thriving, sustainable business environment has not emerged with today’s market rules and battery project pricing. New York leaders hope the new “bridge incentive” will fix that. The theory is that the funding will monetize some of the value of storage that companies cannot get compensation for yet. By supporting the early growth of the market, the bridge will get the industry to a sustainable place, phasing out as deployments grow. The scale and structure of the targets were published in March, but the funding went live during the week of Earth Day. Though the numbers are not new, their sheer size demands attention.