New York calls tender to replace gas peakers with four hour battery storage

The New York Power Authority (NYPA) is looking to replace nearly a dozen, if not all, of its gas-fired peaker plants with four hour battery storage installations in a new tender announced late last week.

The NYPA says a new study has concluded that its so-called “small clean power plants” – ten gas-fired peaker plants located at six locations in New York City and one on Long Island – could be replaced by bulk-scale battery storage projects.

The study was prepared in consultation with the PEAK Coalition, a group of environmental justice and clean energy advocates and demonstrated that four-hour duration battery storage has the potential to replace the gas speakers by 2030, if certain key conditions were met.

It is a sign that the utility’s goal of decarbonising by 2035, and the New York State’s goal of delivering a zero-emission electricity sector by 2040, could be met well before those deadlines.

“As the State moves ahead with offshore wind, solar, and transmission projects that will deliver more clean energy to New York City, NYPA is encouraged by the modelling and forecasting in this collaborative study that shows that we may be able to expedite our transition to cleaner energy technologies at our in-city plants, providing that we can continue to ensure a reliable, resilient energy system for New York City,”  said Justin E. Driscoll, NYPA interim president and CEO.

The ten NY City gas-fired peaker plants have a nameplate rating of 517MW to provide local reliability and grid resiliency, though they operate infrequently – only around 10% of the time, and only when directed to do so to meet increased energy demands.

The analysis shows that four-hour energy storage could provide enough energy to fully replace the operations of each individual peaker plant as early as 2030, thanks to the increased levels of renewable energy.

New York State is targeting 70% renewable energy generation by 2030 and is investing over $US33 billion in 102 large-scale renewable and transmission projects across the state, another $US1.8 billion to scale up solar and is aiming to develop 9GW worth of offshore wind by 2035.

In response to the positive findings from the study, the NYPA has issued a Request for Proposals for development of bulk-scale battery storage projects which are due in by May 24 with potential awards announced as soon as July 1.

“These findings support previous reports put out by PEAK – that battery storage could replace the operations of each individual NYPA peaker power plant in NYC, coupled with clean renewable energy sources on the grid, by 2030,” said Eddie Bautista, executive director of the NYC Environmental Justice Alliance.

“While we await further analyses from NYISO and Con Edison regarding reliability/capacity questions, these findings invite a broader and bolder question: can clean renewable energy plus battery storage also replace all the City’s older, polluting private peaker plants?

“Can NYC become the first city in the nation to have all its peaker plants replaced? We believe we can – especially if we follow the visionary direction established by the New York State Climate Leadership and Community Protection Act.”