NYSERDA’s Bulk Energy Storage Program for BESS Assets

New York is making a massive push toward energy storage with the approval of NYSERDA’s Bulk Energy Storage Program. With a statewide target of deploying 6 GW of storage by 2030, including 3 GW of bulk storage, developers now have a clearer roadmap for participating in large-scale opportunities. This newly adopted framework aims to accelerate the integration of renewable energy while strengthening grid resilience. In this article, we unpack the key program mechanics, upcoming opportunities, and strategic considerations for storage developers and asset owners operating in New York.

New York’s Climate Leadership and Community Protection Act (CLCPA) set the stage for an ambitious 6 GW energy storage deployment by 2030. In June 2024, the NY Public Service Commission (PSC) issued an order operationalizing this vision by establishing 4,700 MW of incremental storage procurements across bulk, retail, and residential sectors. Of this, 3,000 MW will come from bulk energy storage resources interconnected with the New York Independent System Operator (NYISO), with qualifying projects sized at 5 MW or greater. This play helps to incentivize the development of bulk storage to help reduce renewable curtailment, shift generation to peak periods, and support overall system reliability.

Index Storage Credit (ISC): A New Revenue Mechanism

At the heart of the program is the Index Storage Credit (ISC), which provides developers with fixed monthly revenues tied to storage availability and the difference between their bid-in Strike Price and a monthly Reference Price. One ISC is generated for every megawatt-hour (MWh) of discharge capacity that is operational and available for dispatch each day. Projects with high availability will receive predictable payments, while partial availability is factored into monthly ISC awards.

Duration Categories and Resource Eligibility

The program features two primary duration categories:

• < 8 Hour Duration
  
• ≥ 8 Hour Duration

While NYSERDA originally proposed excluding 2-hour systems, the PSC directed inclusion with a cap. Only up to 10% of the total awards can go to 2-hour resources, reflecting their limited system value compared to longer-duration storage. Projects exceeding 8 hours are eligible under a dedicated category and may influence procurement volumes, especially if they demonstrate significant system benefits. Larger 8+ hour projects over 200 MW can be accommodated within this flexible procurement framework. 

Maturity Requirements Developers Must Meet

To prevent speculative bidding, minimum maturity standards are enforced. For 4 to 8-hour projects, developers must show:

• An active interconnection request 
• A viable permitting pathway

Written confirmation of a realistic interconnection pathway and permitting progress is required. These safeguards ensure only credible, construction-ready projects win ISC contracts.

Balanced Weighting Between Price and Value

Project bids will be evaluated on a 60% price / 40% non-price factor weighting. This ensures cost competitiveness while rewarding projects that offer broader system benefits, such as locational value, contributions, and enhanced performance characteristics. For this first RFP, Project Viability and Maturity will count for 20%, Electricity System Value will count for 10%, and Societal and Economic Benefits will count for 10%, however NYSERDA retains flexibility to adjust non-price sub-factor weighting in subsequent  RFP rounds. Having so many non-price factors dilutes the impact of any single one non-price factor, meaning price will be important.

Fire Safety and Community Requirements

Developers must adhere to strict fire safety protocols, including:

• Third-party peer reviews

• On-site emergency response plans

• Annual first responder training

Additionally, NYSERDA will continue proactive engagement with local governments to facilitate community acceptance and streamline permitting processes.

Success in New York’s bulk storage program requires:

• Optimal Sizing: Balancing cost efficiency with high ELCC value

• Readiness: Securing interconnection milestones and permitting progress early

• Strategic Siting: Targeting congested areas or zones with renewable curtailment

• Performance Planning: Ensuring high availability to maximize ISC payouts

Developers that proactively address these areas will have a competitive edge in upcoming solicitations.

SYSO provides comprehensive support for energy storage developers looking to succeed in New York’s bulk energy storage market. From handling NYISO market registration to preparing competitive ISC bid packages, SYSO streamlines the administrative process. Our team also delivers advanced financial modeling to optimize project duration, sizing, and siting, ensuring developers maximize REAP-adjusted returns. Through 24/7 operations and regulatory monitoring, we help assets maintain high availability and navigate evolving NYSERDA and PSC requirements. With SYSO’s full-service market expertise, developers can confidently progress from project development to successful, long-term participation in the NYISO market. Contact us today to learn more about New York’s storage programs.