What Happened?
New York City is installing 10 battery systems citywide capable of storing 1 megawatt of power to increase the city’s resiliency in the event of a major storm or power outage.
Goal
New York City is deploying 10 battery systems - that cost $500,000 per unit – in nine buildings throughout the city. The battery systems will spur efficient energy use and storage in key neighborhoods where consumption is high.
The technology is also vital to providing backup energy sources when power outages occur. After Superstorm Sandy struck the city, more than 1 million energy customers lost power. With an anticipated increase in major storms moving forward, New York City is investing in energy storage to prevent complete blackouts during inclement weather. The energy provider has partnered with the state of New York to deliver up to 44 megawatts of storage statewide by June 2016.
The energy storage systems can be managed individually based on the building demands to allow for real-time responses and adjustments for optimal efficiency. When the individual energy storage systems are aggregated, they can provide enough energy to accommodate peak load demands while increasing building and overall city energy grid resiliency.
The energy storage systems use converters designed for advanced batteries, solar, on-grid and off-grid applications. The converters link batteries to the grid and manage power flow as part of a power conversion system. The energy storage investment is part of New York City’s push for an integration of distributed resources such as renewable energy that allows customers to generate their own power and withstand storms.
Energy Storage on the Rise
A recent report from GTM Research and the Energy Storage Association predicts deployments of energy storage technology will continue to rise across the country. The research anticipates communities throughout the U.S. will deploy 220 megawatts of energy storage in 2015, which is more than three times what was implemented in 2014.
Last year, 180 grid-connected electrochemical and electromechanical storage installations were deployed, representing 61.9 megawatts of power capacity and a 40 percent increase from 44.2 megawatts in 2013. Furthermore in 2014:
- 90 percent of energy storage capacity was in front of the meter, 10 percent behind the meter
- Weighted average system prices were $2,064/kilowatt
- Total energy storage market size was $128 million
Looking ahead, experts expect energy storage projects to continue to increase as system costs continue to decline and organizations are reporting significant savings post-installation. By 2019, researchers believe U.S. energy storage will reach 861 megawatts annually, valued at $1.5 billion which is 11 times what was deployed in 2014. Behind the meter energy storage – as is being deployed in New York City – will account for 45 percent of the overall market within 4 years.
Energy storage systems are beneficial for organizations looking avoid unnecessary costs while enjoying additional revenue if stored energy is sold. In addition, energy storage providers a backup source for organizations in the case of power outages.
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