New York’s plan to invest $200 million in energy storage could help boost demand for what new energy storage company Fluence, a creation of Siemens and AES Energy, sees as a growing market.
New York’s goal to build 1.5 gigawatts of energy storage by 2025, announced on Jan. 2, is part of its plan to generate half of its electricity with renewables by 2030, including enough power from offshore wind farms to power more than 1.2 million homes.
The state’s energy-storage target and regulatory support could be a blueprint for other states as they consider projects, said Ray Hohenstein, market applications director for Fluence, which was formed Jan. 2 and is based in Arlington, Va.
“The size of the target is an important recognition of the value of storage in the eastern U.S.,” Hohenstein told Bloomberg Environment. “Our hope is that it inspires and charts a path for other states, particularly in the eastern U.S., to be similarly ambitious in size and speed of storage adoption.”
If the state meets its energy-storage goal, New York is expected to represent about 15 percent of the total U.S. energy-storage market in 2025, Logan Goldie-Scot, head of energy storage analysis at Bloomberg New Energy Finance, told Bloomberg Environment.
Fluence was created as a way for AES Energy, which has experience developing projects in the U.S. and Latin America, and Siemens, which has European experience, to capture the global energy-storage market, Fluence Chief Operating Officer John Zahurancik said.
The company sees a quickly growing market in the U.S., as utilities to turn to batteries to help them replace aging power plants, used only during peak electricity demand. The batteries would be built alongside new wind and solar projects, he said.
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