National Grid Issues Energy Storage RFP to Help Support the Grid
- Oct 11, 2019 11:49 am GMT
- 1013 views
National Grid has opened a competitive bidding process for a minimum of 10 megawatts of energy storage in four locations in upstate New York. The projects must be in commercial operation by Dec. 31, 2022 and are intended to help support grid reliability and renewable energy deployment.
The state has a goal of deploying 1,500 MW of energy storage by 2025. That goal is supported through a 2018 state regulatory order, 18-E-0130. The order said that as New York’s electric grid becomes smarter, more decentralized and cleaner, energy storage “will be flexibly deployed to store and dispatch energy when and where it is most needed.” It also said that energy storage will also allow New York to meet its peak power needs “without solely relying on the oldest and dirtiest peak generating plants, many of which lay mostly idle and are approaching the end of their useful lives.”
As part of its solicitation to comply with the regulatory order, National Grid wants bids for new, front-of-the-meter distribution system connected energy storage resources, as well as power marketer services.
The company is soliciting eligible projects at four locations: Old Forge, North Lakeville, Menands and the New York Independent System Operator - Zone F area to reinforce electricity reliability during periods of peak demand. The projects also may be eligible to participate in energy storage in the NYISO wholesale market. The power marketer services would support National Grid’s efforts to dispatch the storage projects to maximize value.
Under guidelines issues by the New York State Energy Research & Development Authority (NYSERDA), the storage system must be electric grid-connected chemical, thermal, or mechanical storage and operated primarily for electric load management or shifting electric generation to more beneficial time periods while operating in parallel with the utility grid. The system may also provide other customer benefits such as backup power during a grid outage or power quality event.
Nationwide, energy storage got a boost in February 2018 when the Federal Energy Regulatory Commission voted to remove what it said were barriers to the participation of electric storage resources in the capacity, energy and ancillary services markets operated by regional transmission organizations and independent system operators. The vote followed a November 2016 Notice of Proposed Rulemaking by the commission. The FERC at the time said that market rules designed for traditional generation resources had created barriers to entry for emerging technologies such as electric storage resources.
National Grid joins New York’s other investor-owned utilities, Central Hudson, NYSEG, RG&E, Orange & Rockland and Consolidated Edison, in procuring the dispatch rights to energy storage.
NYSEG and RGE in February issued a joint implementation plan to procure energy storage dispatch rights for a minimum of 10 MW each.
In July, Central Hudson announced its RFP for at least 10 MW of energy storage to be operational by the end of 2022. Offers needed to target energy storage projects connected to the transmission or distribution system and also capable of individual, direct participation in NYISO markets. The systems would need to function as stand-alone assets regardless of whether or not they were co-located with generation assets.
Also in July, ConEd and its O&R business unit issued a joint RFP for at least 310 MW of bulk storage: 300 MW for Con Edison and 10 MW for O&R.
In the National Grid solicitation, prequalification questionnaires are due on October 31, and fully completed proposals are due on December 20.