The New York State Energy Research and Development Authority (NYSERDA) has launched its second competitive solicitation to procure approximately 1 GW of bulk energy storage.

The solicitation is part of New York’s Energy Storage Roadmap and aims to accelerate the deployment of systems capable of strengthening grid reliability, lowering electricity costs and enabling greater integration of renewable generation.

According to NYSERDA, adding more storage capacity will make it possible to store electricity when costs are lower and deliver it during periods of peak demand, reducing reliance on the most expensive generation resources and easing pressure on the power grid.

“Energy storage reserves power when it is less expensive so that we can limit reliance on the most expensive power during peak hours,” said Doreen M. Harris, President and CEO of NYSERDA.

Second bulk energy storage solicitation

The solicitation, identified as ISCRFP26-1, is open to different energy storage technologies that meet the requirements established under the state programme.

The process will be conducted in two stages. During the first phase, developers must demonstrate their projects’ eligibility and provide evidence of a reasonable pathway to meeting the required minimum thresholds.

Applications for this initial phase must be submitted by 3:00 p.m. ET on 15 December 2026. Projects that pass the eligibility assessment will be invited to submit competitive proposals, which will be evaluated based on price and non-price factors.

Incentives linked to project operation

The solicitation will use an incentive mechanism known as the Index Storage Credit, designed to provide greater revenue stability for selected projects.

However, NYSERDA will not make payments until the facilities have secured the necessary permits, been installed and become operational. Projects must also pass a peer-review process and a quality-assurance inspection.

All proposals will be required to comply with New York’s updated energy storage safety codes, which include requirements related to project siting, first-responder training and comprehensive emergency response plans.

In addition, NY Green Bank, NYSERDA’s specialised clean energy investment division, may provide developers and investors with different financing options to support the deployment of storage projects.

New York targets 6 GW of storage by 2030

The new solicitation is part of a programme through which New York intends to procure 3 GW of bulk energy storage across at least three annual competitive rounds.

This capacity will contribute to the state’s broader target of deploying 6 GW of energy storage by 2030. New York’s roadmap recommends adding 4.7 GW, comprising:

• 3 GW of bulk energy storage.
• 1.5 GW of commercial and community-scale storage.
• 200 MW of residential energy storage.

At least 35% of NYSERDA-supported off-site retail and bulk energy storage projects are also expected to be located in downstate New York, where they are more likely to benefit disadvantaged communities and help reduce emissions from peaker plants.

First solicitation contracted 950 MW

The second procurement round follows NYSERDA’s completion of contracts awarded through its first bulk energy storage solicitation, launched in July 2025.

That initial round received proposals from 46 eligible projects, representing approximately 6 GW of power capacity and 30 GWh of energy storage capacity.

NYSERDA ultimately contracted eight projects totaling 950 MW, geographically distributed across New York City, Long Island, the Hudson Valley and Western New York.

Through the latest solicitation, New York aims to advance the development of a more flexible and resilient electricity system capable of integrating larger volumes of renewable energy, while making better use of existing generation and transmission infrastructure.