NY Opens First Bulk Energy Storage Bid

Governor Kathy Hochul today announced the launch of New York’s first Bulk Energy Storage Request for Proposals (RFP), intended to procure one gigawatt (GW) of bulk energy storage as part of New York’s 6 GW Energy Storage Roadmap. Adding bulk energy storage to New York’s grid will lower costs, optimize the generation and transmission of power, enhance energy grid infrastructure, and ensure the reliability and resilience of the State’s electricity system.

“Today’s action is another example of New York’s ongoing commitment to strengthening our grid, ensuring the state continues to have a more affordable and reliable electricity system now and well into the future,” Governor Hochul said. “Safe and strategic deployment of energy storage will help drive economic development and reduce costs for New Yorkers.”

Administered by the New York State Energy Research and Development Authority (NYSERDA), through its Bulk Energy Storage Program, this competitive solicitation seeks to advance a range of energy storage technologies and timely progress toward procuring three GW of bulk energy storage over the three solicitations. Any NYSERDA-supported energy storage projects are contractually required to meet the new storage safety codes adopted last week into Uniform Code by the State Fire Prevention and Building Code Council, which reflect the work and recommendations from the New York State Inter-Agency Fire Safety Working Group (FSWG). While the newly adopted code will not take effect until January 1, 2026, NYSERDA has already integrated these recommendations into its residential, retail, and bulk energy storage programs to ensure facilities are sited safely, that first responders have the necessary training, and that all sites have comprehensive emergency response plans.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “NYSERDA’s Bulk Energy Storage Program provides an opportunity to more than double the current amount of energy storage that has been deployed, contracted, and awarded statewide. This solicitation will further advance New York’s focus on grid reliability, peak reduction and affordability while meeting the demand for more storage to be safely installed across our state.”

NYSERDA’s Bulk Energy Storage Program employs a novel Index Storage Credit (ISC) incentive, as established in the New York Public Service Commission (PSC) Order, modeled in part after the Renewable Energy Certificate (REC) and Offshore Wind Renewable Energy Credit (OREC) utilized in other NYSERDA programs. The ISC is a market-based mechanism that gives project owners greater revenue certainty while incentivizing them to participate in wholesale energy and capacity markets. ISCs will be created based on a project’s operational availability, and will represent one megawatt hour of energy storage capacity that is operational and available to discharge on a given day; projects will be credited and compensated based on the operational availability they achieve in each month over the course of the 15-25-year contracts.

Entities interested in responding to this solicitation must first complete “Step One,” which is an initial qualifying step for proposers to demonstrate program eligibility. Step One Eligibility Applications are due to NYSERDA by 3:00 p.m. ET on September 4, 2025. Once proposals are deemed eligible by NYSERDA, proposers will be invited to submit a “Step Two” bid proposal for project evaluation.

As noted above, NYSERDA supports robust safety measures for all projects and, as a result, will not pay for ISCs until the awarded and contracted projects are permitted, installed and operating and have passed their peer review process and quality assurance inspection – both key milestones to ensure that all projects are designed and constructed with New York’s best-in-class safety standards. In addition, all project proposers must include a comprehensive safety and security plan detailing how they will adhere to the Bulk Energy Storage Program Manual requirements.

Also, associated with this solicitation, NY Green Bank (NYGB), a division of NYSERDA and a specialized investment fund dedicated to bridging financial gaps in clean energy and renewable infrastructure markets in New York State, is prepared to support project developers and investors with a range of financing options in order to advance energy storage. Entities interested in applying for this financing can submit an application to NYGB RFP No. 1.

NYSERDA’s siting team also works closely with local governments to provide tailored education, technical assistance, and model local laws. Through its clean energy siting resources, the siting team empowers communities with the tools and knowledge to make informed decisions and manage responsible clean energy development in host communities.

New York State Public Service Commission Chair Rory Christian said, “Bulk energy storage will play an important role in our continued push to create a cleaner energy distribution system that’s both affordable and reliable. Kudos to Governor Hochul for encouraging and promoting this initiative.”

New York Secretary of State Walter Mosley said, “In looking ahead for the state's future, bulk energy storage can provide the ability to store excess electricity during times of lower usage or high renewable production and return that electricity to the grid during peak times when it’s needed most. This solicitation is the first step to strengthen efficiency and to lower costs for New York’s energy consumers and strengthen the grid. This is another great and concerted effort forward in meeting out the goals of New York’s Energy Storage Roadmap.”

New York State Division of Homeland Security and Emergency Services Commissioner Jackie Bray said, “Clean, reliable energy is crucial to keeping New Yorkers safe, in their day to day lives, and during emergencies. This procurement will lead to a secure, stable source of energy for our communities as we continue to face severe weather and an increased demand on our electric grid.”

New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “Energy storage is fundamental to help ensure reliability while New York continues to invest in renewables and reduce greenhouse gas emissions that are polluting our air and negatively impacting quality of life for New Yorkers. This request for proposals is an important step in investing in energy projects that will combat harmful climate impacts, strengthen the electric grid, and benefit the health and safety of all New Yorkers.”

New York-Best Executive Director William Acker said, “Energy storage is essential to building an efficient, reliable, and affordable electric grid. The launch of New York’s first bulk storage solicitation is a pivotal step toward achieving the State’s nation-leading grid modernization goals. NY-BEST is proud to have worked closely with NYSERDA in support of this milestone, and we applaud the agency’s thoughtful program design, which reflects valuable stakeholder input and sets the stage for successful project deployment.”

Alliance for Clean Energy New York Executive Director Marguerite Wells said, “Energy storage will provide many benefits to a modern power grid, including the ability to fully harness our most cost-effective energy solutions in wind and solar. We thank Governor Hochul and state officials for putting ratepayers first by prioritizing this safe and important technology that will enable our clean energy future.”

New York City Environmental Justice Alliance Executive Director Eddie Bautista said, “NYC-EJA is optimistic about this procurement and the promise of bulk energy storage in New York, a badly needed step in the right direction to fulfill the state's Climate Act mandate for a cleaner, more reliable, and more affordable energy grid. Our work has consistently shown that storage remains the safest and most cost-effective alternative to aging, expensive, and polluting peaker plants that have harmed Disadvantaged Communities for decades. We thank NYSERDA and others for this critical advancement, and look forward to seeing the success of this and future procurements to come.”

New York’s 6 GW Energy Storage Roadmap, which recommends the deployment of six GW of energy storage, also authorizes funds for NYSERDA to support 200 megawatts (MW) of new residential-scale energy storage and 1,500 MW of new commercial and community-scale energy. Additionally, at least 35 percent of the benefits of these new energy storage projects will be allocated to disadvantaged communities.
New York State's Climate Agenda

New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.