Introduction
We are living in a time of dramatic transformation. The energy landscape is shifting beneath our feet as states take bold strides to decarbonize their electric grids. And leading the charge? New York.
Under the Climate Leadership and Community Protection Act (CLCPA), the state has committed to achieving 70% renewable electricity by 2030 and 100% zero-emissions electricity by 2040. That commitment represents one of the most far-reaching clean energy goals in the nation. But how do you integrate massive volumes of intermittent wind and solar energy into the grid reliably? Energy storage. That’s how.
On July 28, 2025, Governor Kathy Hochul announced the state’s first-ever competitive solicitation for bulk energy storage projects. It marked a major milestone in New York’s clean energy roadmap. And it signaled a huge opportunity for innovators, developers, and companies like EticaAG, who are pushing the boundaries of Battery Energy Storage Systems (BESS) with advanced technologies like Immersion Cooling and HazGuard.
Let’s dive into how this program works, what it means for the future, and why now is the time to get involved.
Doubling the Charge: The Push Toward 6 GW of Storage
Back in 2018, New York set its first major storage goals: 1.5 gigawatts (GW) by 2025 and 3 GW by 2030. It was an important start. But as climate science and market forces evolved, so did New York’s ambition.
In her 2022 State of the State address, Governor Hochul took things to the next level: doubling the state’s storage target to 6 GW by 2030. This wasn’t just a political talking point. It came with detailed planning via the updated 2022 Energy Storage Roadmap, developed jointly by the New York State Energy Research and Development Authority (NYSERDA) and the Department of Public Service (DPS).
That roadmap outlined how to overcome financing gaps, market friction, safety challenges, and procurement delays. The takeaway was clear: We need more storage, and we need it fast.
What is the Bulk Energy Storage Program?
When we talk about “bulk” energy storage, we’re talking big. These are systems 5 megawatts (MW) or larger, interconnected to either the transmission or distribution system. Their role is to store energy when it’s abundant (like on sunny or windy days) and inject it back into the grid during high-demand hours.
To encourage this kind of deployment, NYSERDA launched the Bulk Energy Storage Program. And at the heart of it is a unique incentive mechanism: the Index Storage Credit (ISC).
What is the ISC?
Think of it like a financial safety net. Developers submit a “strike price” that reflects the revenue they need to make a project viable. NYSERDA then compares it against actual market revenues from energy and capacity markets.
- If revenues fall short of the strike price, NYSERDA pays the difference.
- If revenues exceed the strike price, the developer pays NYSERDA.
It’s a win-win. Projects gain revenue certainty, which makes financing easier. And ratepayers benefit because NYSERDA only pays when the market doesn’t.
Key objectives of the ISC model include:
- Hedging against revenue volatility
- De-risking projects to unlock private capital
- Delivering maximum value to consumers and the grid
How the Program Works
So what does it take to participate? The process is straightforward but requires strategic planning and coordination. Developers must ensure their projects meet the program’s technical requirements while also aligning with evolving grid needs and market dynamics.
Eligibility Criteria
To qualify for the Bulk Energy Storage Program, a project must:
- Be interconnected in New York to either the transmission, sub-transmission, or distribution system
- Use new and certified equipment, meeting UL safety and electrical standards
- Be a minimum of 5 MW in AC power capacity
- Have an in-service date no later than December 31, 2030
These criteria ensure that only serious, grid-relevant projects with safe, scalable designs enter the pipeline. By setting these standards upfront, NYSERDA is streamlining project quality, grid reliability, and market readiness all at once.
Incentive Framework
Unlike traditional rebates, there are no upfront payments. Instead, developers are paid monthly ISC payments after achieving operational certification. These payments continue throughout the contract term, which typically runs for 15 years.
To calculate these payments, NYSERDA uses two benchmarks:
- Reference Energy Arbitrage Price (REAP) – estimates what the project could earn from energy market arbitrage
- Reference Capacity Price (RCP) – based on capacity auction prices adjusted for storage duration
Together, these form the reference price. The ISC payout is based on the difference between the strike price and this reference value.
This system encourages developers to build high-performance, efficient systems. And it rewards those who operate their storage assets wisely.
Safety & Oversight: Lessons Learned from Battery Fires
Safety is a top priority. Recent years have brought increased scrutiny to the energy storage industry due to high-profile incidents involving lithium-ion battery fires. In response, New York has implemented a robust set of safeguards designed to mitigate risk and ensure public confidence.
The Bulk Energy Storage Program incorporates rigorous technical oversight and fire safety requirements. Projects must go through multiple checkpoints to demonstrate that designs, operations, and contingency plans all meet best-practice standards. These reviews are not simply box-checking; they are critical evaluations that reinforce quality and accountability.
NYSERDA’s Peer Review and QA Process
NYSERDA’s peer review and quality assurance (QA) process represents a comprehensive evaluation method that begins at the earliest design phase and continues through post-construction. It is intended to catch issues before they pose safety, performance, or compliance risks.
The goal is not only to protect the grid and communities, but also to help developers meet expectations with a higher degree of confidence and efficiency. The process includes:
- Comprehensive site design reviews before construction
- Mandatory UL 9540A full-scale fire testing
- Emergency Response Plans (ERP) tailored to local authorities
- Hazard Mitigation Analyses (HMA) and detailed explosion control documentation
Before a project can receive payments, it must pass:
- Pre-construction peer review
- Post-construction QA inspection
- Operational certification milestone
NYSERDA even contracts third-party fire safety experts to assist with quality assurance. It’s a best-in-class approach designed to protect people, property, and the grid.
Market Impact and Industry Reaction
This program represents more than a government initiative. It’s becoming a driving force behind industry innovation. Industry stakeholders, developers, and financiers have widely supported the ISC model because it provides something developers crave: certainty.
And that certainty unlocks investment.
Companies like EticaAG are already exploring how technologies like Immersion Cooling and HazGuard can help meet these demands. Immersion Cooling minimizes the risk of thermal runaway and prevents fire propagation. It improves overall energy efficiency by enabling more compact and thermally stable battery configurations.
Meanwhile, HazGuard, a toxic gas neutralization system, is designed to detect, extract, and eliminate harmful battery gases generated during thermal runaway events. By actively neutralizing flammable and toxic gases at the source, HazGuard strengthens fire prevention efforts, enhances emergency preparedness, and supports compliance with evolving safety regulations.
These innovations offer a complete toolkit to strengthen safety, boost efficiency, and enhance long-term operational resilience for grid-scale storage assets.
Still, challenges remain. Attrition rates are high in the storage development pipeline. Projects sometimes fail due to financing, interconnection delays, or permitting issues. That’s why NYSERDA is also considering maturity milestones to ensure only the most viable projects win contracts.
What’s Next? Current Solicitation and Future Rounds
The first big moment came in July 2025, when NYSERDA launched its first competitive bulk solicitation, aiming to procure up to 1 gigawatt of energy storage capacity.
This is just the beginning. The roadmap calls for at least three annual solicitations, each targeting around 1 GW to reach the 3 GW bulk procurement goal by 2030.
Where will these projects go?
New York is prioritizing Zones J (New York City) and K (Long Island), areas with aging peaker plants and high pollution. Energy storage can help retire those plants to help cut emissions and improve public health.
And it doesn’t stop at bulk. NYSERDA is simultaneously expanding funding for retail and residential storage programs, ensuring that smaller-scale solutions contribute too.
Long-Term Vision
Taking a broader view of the energy transition ahead, the Roadmap projects that by 2040, New York will need 12 GW of energy storage, increasing to more than 17 GW by 2050.
But not all storage is created equal. Today’s systems typically deliver 2 to 8 hours of discharge. As we approach a 100% clean grid, we’ll need long-duration energy storage (LDES) which are systems that can deliver power for 10, 24, even 100 hours.
To prepare, NYSERDA is investing in:
- R&D for LDES technologies
- Pilot demonstration projects
- Innovation support through its Clean Energy Innovation program
This matters because long-duration storage can replace natural gas as the last-resort backup. It makes renewables reliable 24/7. And it sets the stage for deep decarbonization.
Conclusion
New York is building the future.
The Bulk Energy Storage Program is bold, smart, and grounded in technical excellence. It provides a clear path for developers, investors, and innovators to deploy impactful projects that move the grid toward reliability and sustainability.
And if you’re working in battery storage, this is your moment.
Technologies developed by companies like EticaAG, including Immersion Cooling for thermal management and HazGuard for toxic gas neutralization, are contributing to the safer and more efficient deployment of large-scale battery storage in line with the program’s objectives.
Together, we can power a more resilient and sustainable future.
