New York Seeks 1 GW of Grid-Scale Energy Storage

The New York State Energy Research and Development Authority (NYSERDA) has launched its second competitive solicitation for bulk energy storage, seeking to procure approximately 1 gigawatt (GW) of capacity. Announced on November 12, 2026, the initiative is part of New York's 2022 Energy Storage Roadmap and supports the state's broader efforts to modernize its electricity grid. Expanding large-scale energy storage is expected to improve the management of electricity generation and transmission, strengthen grid resilience and help maintain reliable power supplies as energy demand increases.

The solicitation is being administered through NYSERDA's Bulk Energy Storage Program and is open to a range of eligible energy storage technologies. It forms part of a procurement plan targeting 3 GW of bulk energy storage through at least three annual competitive solicitations. This contributes to New York's wider goal of deploying 6 GW of energy storage capacity by 2030. The program uses an Index Storage Credit (ISC) incentive mechanism, which is designed to provide revenue certainty to developers and help make storage projects financially viable. NY Green Bank, a division of NYSERDA, is also prepared to offer financing options to project developers and investors.

The procurement follows a two-step application process. Interested developers must first submit an eligibility application to demonstrate that their proposed projects meet the program requirements. Applications for this initial stage are due by December 15, 2026. Eligible applicants will then be invited to submit detailed bid proposals for evaluation. NYSERDA will assess project proposals based on pricing and other project characteristics before selecting projects for long-term contracts. Importantly, payments under the Index Storage Credit mechanism will only begin after awarded projects have been permitted, installed, made operational and passed the required safety and quality assurance reviews.

Safety and community considerations are also incorporated into the program. NYSERDA requires supported projects to comply with updated energy storage safety codes, including requirements for safe site selection, emergency response planning and first-responder preparedness. The state also intends to direct at least 35% of NYSERDA-supported off-site retail and bulk energy storage projects to downstate New York. These projects are expected to help address local grid reliability needs and reduce emissions from fossil-fuel peaker plants, which are often used to meet periods of high electricity demand.

For businesses, the procurement creates potential opportunities across battery manufacturing, energy storage technology, engineering, equipment supply, project development, construction and grid management. Energy developers and infrastructure investors can participate in the competitive process, while companies with significant electricity requirements may benefit over time from improved grid reliability and more efficient management of peak demand. The expansion of storage capacity can also help electricity systems make better use of renewable generation by storing surplus power for periods when demand is higher or generation is lower.

The development is closely connected to Cognitud's focus on energy transition, decarbonization and sustainable infrastructure. Assessing energy storage investments, understanding their role in renewable energy integration and evaluating their operational and environmental implications are important considerations as businesses and energy stakeholders advance their transition strategies.