NY Offers up to $15.5M for Projects that Value Stack Energy Storage

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New York is offering up to $15.5 million for projects that show the benefits of value stacking distributed energy storage for retail electric customers and the grid (PON 3541).

distributed energy storage

By ImageFlow/Shutterstock.com

Proposals are due December 31, 2019.

The solicitation was issued by the New York State Energy and Research Development Authority (NYSERDA), which seeks commercial projects that can help unravel the complexities of value stacking — the term used for capturing several different revenue streams from one project.

The authority is looking for projects that can handle the operational complexity of determining which services to provide in a value stack — and in what combination and when during the day or year.

NYSERDA also hopes to improve understanding of the complexity of transacting with several different entities. “Each entity uses different structures and rules to procure and compensate the values, including tariffs, market mechanisms, programs, auctions, and service contracts,” says the solicitation.

A third complexity NYSERDA looks to solve involves finding business and financing models that bring practicality to capital investments.

The solicitation seeks real-world commercial projects that offer approaches to value stacking that are scalable and are replicable. The projects may provide value to retail electric customers, distributed generation, utilities, and the New York State Independent System Operator.

Proposals will undergo multiple levels of review. As a first step, applicants must provide a concept papers. Projects selected for the next stage will be invited to transform concepts into feasibility studies or full demonstration proposals. Funding will be available for feasibility studies and proposals.

The projects must support the state’s goals for Reforming the Energy Vision policies, renewable generation and greenhouse gas reduction. More specifically, NYSERDA seeks proposals that

  • Reduce the intermittency of solar and wind energy
  • Avoid or delay the need for new electric system infrastructure
  • Increase system efficiency and resiliency
  • Reduce the requirement for fossil fuel plants to meet periods of peak electric demand or,
  • Compliment demand response and energy efficiency measures within buildings

The RFP is available on NYSERDA’s website.

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About Elisa Wood

Elisa Wood is the chief editor of MicrogridKnowledge.com. She has been writing about energy for more than three decades for top industry publications. Her work also has been picked up by CNN, the New York Times, Reuters, the Wall Street Journal Online and the Washington Post.