Now, more than ever, it is vital that New York build more renewable energy. After two decades of nearly stagnant power demand, growth has returned to the sector.1 As reported in the U.S. National Power Study, published by the American Clean PowerAssociation (ACP), between 2024 and 2040, electricity demand in the US is expected to grow by 35-50%, driven by a combination of underlying economic growth, large industrial loads like data centers and manufacturing, and the electrification of transport and heating. The study also highlights that, especially for the rest of the decade, the demand increases are likely to be concentrated in the Eastern Interconnection2 and Texas. According to the New York Independent System Operator’s (NYISO) 2023 load forecast, “Baseline energy and coincident peak demand increase significantly throughout the forecast period, driven largely by large load project growth in the early forecast years” though the impacts will be summer peak demand rather than total load. To meet the challenge, we need capacity to be built quickly. That’s where renewable energy comes in. Solar and batteries can be deployed in 1-2 years, faster than gas plants, which typically take at least 2-5 years. Major gas turbine manufacturers like GE Vernova, Siemens Energy, and Mitsubishi Power have reported unprecedented surges in demand, leading to significant backlogs and now quoting approximately a 5-year wait time for new gas generators to be supplied to the US.

The Energy Storage Market

New York has demonstrated leadership in energy storage, driven by an ambitious target of 6 GW by 2030. New York will need more large-scale storage to shift and balance energy from increased renewables penetration on the grid. As New York moves from a summer to a winter peaking grid, the state will need more capacity to replace downstate peaker plants and address broader reliability challenges. In February 2025, the New York Public Service Commission (PSC) approved an order that seeks 1500 MW and 200 MW of new retail and residential storage, plus 3 GW of new bulk storage, added to approximately 1 GW of existing storage assets already procured by the state.

NYSERDA expects to issue the first of three annual bulk storage solicitations by the end of this month for deployment in 2027 and 2028, with more storage solicitations in 2026 and 2027 for deployment in 2028-2030. The solicitation will be for 4+ hour duration batteries, with a target of 20% 8+ hour batteries.

New York plans to incentivize utility-scale batteries via the Index Storage Credit in a contracted payment structure similar to Indexed Renewable Energy Certificates (RECs) and Offshore Wind Renewable Energy Credit (ORECs), where developers bid a nominal Strike Price into a competitive solicitation. NYSERDA will award the solicitations based on price evaluation (60%) and non-price factors (40%). For non-price factors, NYSERDA will examine project maturity and viability, electricity system value, and societal and economic benefits. The 2024 Energy Storage Order’s geographic minimum targets and considerations for disadvantaged communities will also impact NYSERDA’s weighting of non-price factors.

NYESRDA has proposed in its draft Bulk Energy Storage Soliciation (released in May 2025) that projects submitting bids must have an active interconnection request with the NYISO; control the project site through ownership lease, or an exclusive option to purchase or lease; have a land use permit application initiated; have initiated in community engagement efforts; employ at least one team member with development experience of a similar size and complexity; and demonstrate a realistic path to achieve commercial operation by the end of 2030.

NYPA’s Expanded Role and Strategic Initiatives

The 2023-24 State Budget authorized and directed the New York Power Authority (NYPA) to significantly expand its responsibilities to build renewable energy in the state.

According to NYPA’s strategic plan, the agency is looking at all potential pathways to catalyze renewable energy projects, including through partnerships, greenfield development, distributed energy resources, community solar, innovative financing structures, and NYPA-enabled projects at customer or public sites.

NYPA may choose to operate under several operating models, depending on the stage of the development process at which it becomes involved.

• Build Transfer Agreement – NYPA would purchase an in-development renewable energy generating project from its owner at a mutually agreeable milestone, such as the commercial operation date. The percentage of ownership in the underlying project transferred from the owner to NYPA may vary between 51% and 100%.
• Co-Development – NYPA would jointly develop, construct, own, and operate a project in partnership with a developer
• Purchase and Sale Agreement (PSA) and Membership Interest Purchase Agreement (MIPA)- NYPA would acquire projects by purchasing the assets or taking an ownership interest in a partnership. Under these arrangements, NYPA would enter late in the development process, and may provide a competitive cost of capital and expertise to complete the projects.

The 2025 planned portfolio for NYPA, as depicted in the graphs below, represents 37 projects in every region of the state with more than 3 GW of capacity, featuring solar PV and battery energy storage systems. However, NYPA acknowledges that there will be some attrition from this inaugural tranche of projects during contract negotiation.

New York’s clean energy transition is at a pivotal moment. While the state has made substantial progress toward its ambitious climate and renewable energy goals, critical challenges remain in meeting the rising electricity demand. Yet, emerging opportunities exist in energy storage and expanded roles for public entities like NYPA. Together, these strategies reflect a broader shift toward a more coordinated and diversified approach to meeting New York’s clean energy goals.

 

1 U.S. National Power Study, American Clean Power Association (ACP)
2 North America is comprised of two major and three minor alternating current (AC) power grids or “interconnections.” The Eastern Interconnection reaches from Central Canada Eastward to the Atlantic coast (excluding Québec), South to Florida and West to the foot of the Rockies (excluding most of Texas).