The New York State Energy Research and Development Authority (NYSERDA) released Wednesday a Battery Energy Storage System Guidebook to help permitting authorities and companies navigate the siting and review processes for battery energy storage projects.

The guide book will outline laws relating to battery energy storage systems, required permit, and a checklist for field inspections of residential and small commercial battery energy storage systems.

“Under Governor Cuomo’s nation-leading commitment to deploying 3,000 MW of energy storage by 2030, New York is rapidly becoming one of the leading markets for energy storage development in the U.S., and this new Guidebook will be a critical tool for local governments, developers, and customers who seek to adopt energy storage solutions,” Alicia Barton, president and CEO, NYSERDA, said. “Energy storage is a key resource in our ability to build the 100% clean electricity system of the future, and NYSERDA is committed to providing hands-on resources to communities all across New York as we build a cleaner, more cost-effective and more resilient energy system for the long term.”

This resource is the first comprehensive set of guidelines for reviewing and evaluating battery energy storage systems in the state. This, among other resources, will create a comprehensive process to safely permit all types of battery energy storage systems.

NYSERDA offers continuing free technical assistance to local governments help implement the resources outlined in the Guidebook. For additional information and guidance, local officials can contact the siting team at NYSERDA by emailing cleanenergyhelp@nyserda.ny.gov.

On March 11, the New York State Energy Research and Development Authority (“NYSERDA”) filed its proposed Implementation Plan to administer its Energy Storage Market Acceleration Bridge Incentive Program and support the ambitious New York Public Service Commission (“PSC”) order requiring 1.5 GW of energy storage in New York by 2025 and 3 GW by 2030 (the “Storage Order”). The Implementation Plan breaks down the state’s incentive strategy primarily between “Retail Storage Incentives” and “Bulk Storage Incentives,” and provides essential preliminary details for sponsors, investors, and lenders considering energy storage projects in the state. Both programs will officially launch in Q2 2019. This article summarizes the program framework generally but focuses on the key attributes of the Retail Storage Incentives program (the “Retail Program”) and associated NYSERDA Retail Energy Storage Incentive Program Manual (the “Program Manual”). A subsequent article will address the Implementation Plan’s Bulk Storage Incentives and associated program manual.

Retail Program Funding and Scope

The Storage Order authorized a $310 million investment in energy storage deployment to be administered by NYSERDA, in addition to $40 million previously made available solely to energy storage paired with solar projects. The Implementation Plan preliminarily allocates $130 million to Retail Storage Incentives and $150 million to Bulk Storage Incentives. The Implementation Plan notes that an additional $53 million in Regional Greenhouse Gas Initiative (“RGGI”) funds will later be made available for retail and bulk storage projects specifically located on Long Island.

The Retail Storage Incentive will be a fixed up-front amount per kilowatt-hour (“kWh”) of “usable installed storage capacity” for projects up to five megawatts (“MW”) of alternating current (“AC”) capacity. Projects will receive an initial incentive level of $350 per kWh for the first four hours of a system’s storage duration, after which the rate will be reduced by 50% for hours five and six. No incentive is provided for storage capacity beyond six hours. The incentive is capped at 15 megawatt-hours (“MWh”).

A project may be a standalone energy storage system or paired with a solar photovoltaic (“PV”) system, and it may be interconnected behind a customer’s electric meter or directly into the distribution system. The Implementation Plan also requires that a project’s value must be “monetized under an Investor Owned Utility (‘IOU’) tariff in the form of bill savings or credits.”

The latest numbers for U.S. energy storage activity are out. They show a surge of activity coming over the next five years, leading to 6x market growth.

By 2024, the storage market will be worth $4.7 billion, driven evenly by utility-scale and behind-the-meter battery projects.

On this week’s Energy Gang episode, we’ll unpack the numbers in the latest Energy Storage Monitor from Wood Mackenzie and the Energy Storage Association. They show a doubling and then a tripling of storage to come — making batteries an important part of utility planning in every region of the country.

Where’s growth happening, and what does it mean for grid planning?

Then, with many farmers in crisis, more of them are putting solar on their land. That’s providing new sources of income, but many fear it could take prime croplands out of commission. How do we site solar on agricultural lands properly?

And finally, what is going on over at Tesla? We’ll make try to make sense of the confusing series of decisions at the company.

While the once-steady rise in solar employment has flattened and even declined slightly over the past two years, job creation in other clean energy sectors is booming. A recent report by Environmental Entrepreneurs (E2) finds that U.S. jobs in its “clean storage” and “clean vehicles” categories grew 14% and 16%, respectively, to 75,000 and 254,000.

The report ties the rise in batteries to deployment, which echoes earlier figures by Wood Mackenzie’s latest report which finds that the United States installed 80% more energy storage (as measured by MWh) in 2018 versus 2017, with more growth expected in future years.

The much larger “clean vehicles” category, which includes hybrid vehicles as well as electric vehicles (EVs) grew 16% to 254,000 jobs, 68,000 of which were in electric vehicles themselves. E2 notes that more than 7,000 jobs were brought to Nevada by Tesla’s Gigafactory alone, and that the county the factory is located in has nearly 2 clean energy/manufacturing jobs for every resident.

China dominates manufacturing

One of the ironies of U.S. job growth in these two industries is that the actual making of the lithium-ion batteries which are used exclusively in EVs and dominate stationary energy storage is increasingly dominated by China. More centrally, China also increasingly controls the supply of the three key processed materials that are needed to make these batteries.

They’ve been used as a rubber additive, a carbon-capture medium and a bioplastic ingredient. Now, discarded eggshells may have yet another use. Scientists have determined that they could be utilized in an eco-friendly and inexpensive form of energy storage.

An international team of researchers started with regular chicken eggshells, which they washed, dried and crushed into a fine powder. That powder consisted both of the calcium carbonate outer shell, along with the protein-rich fiber membrane found inside.

The material was then used as an electrode against a metallic lithium anode, within a non-aqueous electrolyte. When tested, the resulting battery cell was found to maintain a capacity retention of 92 percent, over the course of more than 1,000 charge/discharge cycles (capacity retention is defined as “a measure of the ability of a battery to retain stored energy during an extended open-circuit rest period”).

This energy-storage capability came thanks mainly to the calcium carbonate, which allowed the crushed egg shells to store lithium. It is now hoped that the material could be incorporated into a low-cost lithium-ion capacitor.

As the mix of energy sources feeding power-hungry homes, businesses and industry comes to incorporate more renewables like wind and solar, society faces a reckoning with where to turn when wind and sunshine die down. What will it take for greener sources not only to join fossil fuels on the American power grid, but eventually to displace them?

In February 2019, Los Angeles announced plans to phase out three natural gas power plants by 2029 and to replace them with a combination of renewable energy and battery storage. A few months earlier, the California utility Pacific Gas & Electric won regulatory approval for similar plans. It hoped to replace a trio of natural gas plants with industrial scale battery storage systems, including a 730 megawatt-hour project to be designed and built by electric car company Tesla Motors. For comparison, the two small plants slated for retirement in PG&E’s plan can generate up to 47.6 megawatts of electricity when needed, while a larger natural gas plant in the project can produce up to 606 megawatts.

The idea behind both plans is that the capricious nature of energy from sunshine and wind creates a problem for operators who need to match the amount of energy supply at all times to the amount of demand. Storage technologies including batteries offer a way to maintain the supply-demand balance by drawing electricity from the grid when renewables are abundant and sending it back when demand picks up or renewables’ output falls short.

Both the Los Angeles and PG&E plans have some unusual factors. But even so, they may offer glimpses of a future in which large-scale battery storage helps ease the way for the kind of energy mix that growing numbers of states demand. California mandated last year that all of its electricity come from zero-emission sources by 2045. And clean electricity legislation is on the table this year in states including Minnesota, New Mexico, New York, and Washington state. In California, regulators are also requiring PG&E and the two other investor-owned utilities to procure at least 1.3 gigawatts of energy storage capacity for the state’s grid by 2020.