New York Gov. Kathy Hochul has released a historic, first-of-its-kind request for proposals to acquire 1 GW of bulk energy storage, a key step toward New York’s goal of 6 GW of energy storage.
“This step comes one step among several by New York to stay true to investing in our grid, so a better, cheaper system of power comes within reach by state, both today and long into the future,”
Gov. Hochul stated.
“The responsible, strategic use of energy storage will help to build our economy and save money for New Yorkers.”
Operated by the New York State Energy Research and Development Authority (NYSERDA), its Bulk Energy Storage Program aims to encourage a wide range of energy storage technologies and advance towards contracting for 3 GW of bulk energy storage through three solicitations. All energy storage projects funded by NYSERDA are subject to contractual agreement to ensure compliance with those new store safety codes newly adopted within a week ago by Uniform Code by virtue thereof by the State Fire Prevention and Building Code Council, and those newly published codes encompass work and recommendations by virtue thereof by the New York State Inter-Agency Fire Safety Working Group (FSWG). Though new code, by virtue thereof, does not go into effect until January 1, 2026, NYSERDA has already incorporated those recommendations into its residential, retail, and bulk energy store programs to assist in ensuring that facilities are well-sited safely, that first responders are well trained, and all sites possess complete emergency status response plans.
“NYSERDA’s Bulk Energy Storage Program can potentially double or even triple the current installed, contracted, and awarded energy storage statewide. This solicitation will further complement New York’s emphasis on grid reliability, peak reduction, and affordability as they rise to their charge to install more storage safely statewide,”
said NYSERDA President and CEO Doreen M. Harris.
NYSERDA’s Bulk Energy Storage Program utilizes a new Index Storage Credit (ISC) incentive, approved by the New York Public Service Commission (PSC) Order, which is partially based on the Renewable Energy Certificate (REC) and Offshore Wind Renewable Energy Credit (OREC) used by other NYSERDA programs. The ISC represents a market tool that provides project developers with a greater degree of revenue predictability, while still encouraging them to engage with wholesale energy and capacity markets. ISCs are to be established with a project’s operational availability, and they are to constitute a unit consisting of 1 MWh of operational energy storage capacity to be discharged having been made available by a day; projects are to be credited and paid by their operational availability actually met per month within their 15- to 25-year contractual agreements.
Proposers who are interested in bidding on this solicitation are required to go through an initial proposer qualification process with the potential to be a program-eligible proposer. The Step One Eligibility Application must be submitted to NYSERDA by 3 p.m. ET on September 4, 2025. Proposers are eligible to submit a “Step Two” bid proposal to be evaluated for projects after proposals are found to be eligible by NYSERDA.
As earlier mentioned, NYSERDA advises prudent safety precautions to be implemented in each project and thus will not seek to recoup from ISCs until aforementioned awarded and contracted projects are commissioned, installed and running and having undergone their peer review process and inspection to ensure their quality — significant milestones to achieve all projects under development with New York’s state-of-the-art safety precautions. Furthermore, all project proponents are required to submit with their proposal a comprehensive safety and security plan outlining how they intend to meet the provisions outlined in their Bulk Energy Storage Program Manual.
Additionally, in relation to current solicitation, NY Green Bank (NYGB), a subsidiary to NYSERDA and a focused investment fund with a goal to assist and meet financial requirements in clean energy and renewable infrastructure marketplaces in the State of New York, is available to assist project developers and investors with an extensive range of financing products to assist energy storage further. Prospective applicants who are willing to apply for such financing are eligible to submit an application to NYGB RFP No. 1.
NYSERDA’s siting team collaborates with host governments to offer customized education, technical support, and model local legislation. The siting team helps communities, through its clean energy siting tools, make more informed decisions and attain responsible clean energy development in host communities. New York’s 6-GW Energy Storage Roadmap also directs funding allocation to NYSERDA to support 200 MW of new residential-scale energy storage and 1,500 MW of new commercial and community-scale energy. Additionally, at least 35% of the worth of such new energy storage infrastructure projects will be dedicated to disadvantaged communities.
