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Hybrid Storage Offers Additional Benefits for Renewable Resources and the Grid

February 2, 2021

Energy Storage Resources (ESRs) provide a unique benefit to the energy grid in New York. These resources, examples of which could include batteries, flywheels, pumped water storage, and compressed air storage, help grid operators meet demand by storing electricity generated by another resource and making it available to the grid when needed.

Soon, new NYISO market rules for facilities known as “co-located” or “hybrid” storage resources will further enhance the use of battery storage and other methods of storing electric energy.

ESRs have a unique ability among energy resources. ESRs can improve the cost efficiency of the system by charging during periods of low demand and low prices, and supplying that energy to the grid during periods of high demand, when prices typically rise.

The co-located storage market participation model, which will be implemented this year, allows for the installation of battery storage technology at the site of wind or solar power sites. Having battery storage at the same location as these renewable resources can improve the performance and efficiency of solar or wind by reducing curtailments (when resources are told to shut down or reduce generation in response to reduced demand or transmission constraints).

Co-location of wind or solar resources and an ESR also saves developers money by having the two technologies on the same site, making these resources appealing at a time when New York State is seeking to integrate more clean energy onto the grid. In 2021, NYISO will work with its market participants to develop additional rules for hybrid storage aggregations of various configurations to participate in our markets.

As New York State continues to move to a zero-emission grid by 2040 as directed by the state Climate Leadership and Community Protection Act, ESRs will increasingly serve a vital role. The introduction of hybrid storage creates even more opportunities to make use of this important technology.  As managers of the wholesale markets that provide for the buying and selling of electricity for the benefit of all New Yorkers, we will continue to develop new market products that will encourage new investment in these areas.​​​​

For more about how we are addressing a zero-emissions grid with market-based solutions, visit the 2040 Power Grid webpage.

We are an independent, not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State.