Bulk order of storage estabishment in New York may bolster Large-scale Dynamic Energy Storage (LDES) systems.
New York's Bulk Procurement for Energy Storage: A Look Ahead
New York has taken a significant step towards increasing its energy storage capacity with the installation of less than 100 megawatts (MW) of energy storage in 2024, bringing its total capacity to 500 MW. This move is part of Governor Kathy Hochul's announcement of New York's first bulk procurement for storage, requesting one gigawatt (GW) per year over the next three years.
The competition for the first third of New York's 1 GW energy storage contract by 2026 involves various companies and technologies. However, specific firms are not listed in the search results. Traditional lithium batteries may still have an advantage in this competition due to lower costs and established performance.
Long-duration energy storage (LDES) companies, on the other hand, could be the real winners of the bulk procurement in New York. This is due to the state subsidies offering favorable conditions for LDES technologies, which may offer more cost-effective solutions for large scale and extended duration storage needs.
The challenge for LDES is that it is more expensive and does not have deployment at scale compared to battery storage that is already cost-competitive. Pumped hydro, compressed air or carbon dioxide, and zinc battery startups such as Eos Energy Enterprises or e-Zinc could be contenders for the New York storage projects.
The Trump administration's new restrictions on batteries containing Chinese components, set to come into effect in 2026, may benefit developers competing for the first gigawatt of New York's storage deal. There may be ways to skirt around these curbs, such as stockpiling now or buying equipment from non-sanctioned countries like South Korea.
Early applications for the New York storage projects are due to the New York State Energy Research and Development Authority by September 4. The first tranche of winners for the New York storage projects is expected to be picked by the second quarter of 2026, with the combined 3 GW of projects expected to come online between 2028 and 2030.
Texas and California have already made significant strides in energy storage. Texas built 4.7 GW of storage last year alone, while California constructed 4.3 GW. The Southwest (Arizona, Nevada, and Utah) deployed a combined 2.5 GW of storage.
Variable renewables such as wind and solar made up less than 13% of New York's electricity generation in April 2025. The energy storage market in New York makes money by charging when power prices are low and discharging when prices are high, but the limited price volatility makes it difficult for energy players to make sufficient returns.
New York aims to have 6 GW of storage capacity by the end of this decade. With the bulk procurement in place, it seems that the race is on to meet this ambitious goal.
Note: This article is based on the provided bullet points and does not contain any opinions or unrelated information.
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