Lengthy Island might change into a scorching spot for changing outdated fossil-fueled energy crops with batteries.
The geography of the island constrains entry to electrical energy; it depends on a fleet of getting older oil- and gas-fired energy crops to fulfill peak demand. That observe runs up towards New York state’s crackdown on its dirtiest energy crops and its concerted push towards a clear grid by 2040.
However Lengthy Island might begin shutting down fossil-fueled peakers and changing them with batteries within the subsequent few years and save prospects cash within the course of, in response to a brand new evaluation from Strategen Consulting and the New York Battery and Vitality Storage Know-how Consortium (NY-BEST).
Particularly, the research discovered that Lengthy Island might do away with 334 megawatts’ value of peakers in the present day, swap in new battery crops as an alternative, and get monetary savings for electrical energy prospects whereas sustaining dependable energy. One other 782 MW might retire by 2023 when new state nitrogen oxide (NOx) laws kick in. One other tranche totaling greater than 1 gigawatt might shut down in 2030, assuming New York fulfills its targets for photo voltaic and offshore wind development by that point.
“The Lengthy Island peakers, they’re outdated, soiled, and costly,” mentioned Invoice Acker, govt director of NY-BEST. “Changing them will get monetary savings and profit the surroundings.”
This discovering displays the fabric prices of sustaining an getting older fleet that contains crops constructed way back to the 1940s. On high of that, an environmental rule to cut back NOx emissions from energy crops kicks in by 2023, which can power costly upgrades to a number of of the crops. Clients should pay additional to maintain these oil-fired crops round, regardless that they’re hardly ever wanted.
Lengthy Island additionally has extra capability than it wants, the evaluation discovered. Which means prospects pay for redundant gear to sit down idle more often than not. Batteries, in distinction, can meet peak wants and carry out helpful duties within the energy markets outdoors of peak demand occasions.
Lithium-ion batteries do have limits on what number of hours of power they will present. However 54 p.c of the peaker begins analyzed within the research lasted 4 hours or much less, nicely throughout the parameters of cost-effective battery installations in the present day.
“There’s some low-hanging fruit in a few of these peakers that don’t run too typically,” mentioned lead creator Edward Burgess, a senior director at Strategen. Future longer-duration battery applied sciences might assist scale back reliance on the 90 p.c of peaker plant begins that final not more than 13 hours.
The peaker retirements and battery installations described within the research would put Lengthy Island on a path towards the state’s long-term decarbonization objective. (Picture credit score: Strategen)
Lengthy Island way of thinking
Among the benefits of storage derive from Lengthy Island’s distinctive regulatory surroundings, the report famous.
Public energy entity Lengthy Island Energy Authority oversees the native grid and serves 1.1 million prospects with the assistance of a subsidiary of utility PSEG. Lengthy Island is a part of the statewide grid and wholesale markets operated by NYISO, however LIPA will get most of its peaking capability via a bilateral contract with utility Nationwide Grid.
That contract lasts from 2013 to 2028, with some potential offramps. It displays a long-term dedication to decades-old mills, signed just a few years earlier than power storage grew to become a aggressive useful resource for large-scale capability.
“A few of these contracts have a reasonably excessive fee for capability,” Burgess mentioned. “In the present day’s battery costs examine fairly favorably.”
Lengthy Island additionally makes for a pure touchdown level for New York’s deliberate inflow of offshore wind era, which can play a pivotal function within the state’s march towards a carbon-free grid. Which means a brand new provide of era, which may very well be saved by batteries to be used in later moments of excessive demand.
“We want to have the ability to accommodate the huge quantities of offshore wind and different renewables which might be going to be approaching,” Acker mentioned.
The area additionally advantages from avoiding the “buyer-side mitigation” rule that the Federal Vitality Regulatory Fee has enforced for clear power property in New York’s capability market. This rule raises the minimal bid worth for batteries within the load pockets of New York Metropolis and the decrease Hudson Valley. However Lengthy Island, generally known as Zone Okay for grid-planning functions, sits outdoors these areas.
“These peakers don’t face that problem,” Acker famous. “They will take part within the wholesale market with none of the issues related to the mitigated zones.”
Prepared to change?
Lengthy Island has already taken its first steps towards grid battery adoption. LIPA constructed long-lasting battery techniques in East Hampton and Montauk to assist meet seasonal tourism demand on the island’s japanese tip. And LIPA held a request for info on power storage earlier this 12 months forward of a forthcoming request for proposals.
However that course of contemplates between 155 MW and 175 MW of storage. “What the research factors out is they will enhance the size of these efforts fairly considerably and nonetheless be conservative,” Acker mentioned.
To be clear, a number of revealed research on the efficacy of changing New York peakers with batteries have not but modified the variety of precise peaker-to-battery replacements within the state, which nonetheless stands at zero.
“We haven’t but seen replacements,” Acker mentioned. “However we’re on the cusp of that.”