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Con Edison, 174 Power Global sign contract for big battery storage project in New York City

December 17, 2020

Greentech Media:

New York utility Con Edison has signed its biggest energy storage contract to date, a 100-megawatt/400-megawatt-hour lithium-ion battery project that will help balance a grid facing rising levels of offshore wind and other renewable power in the years to come. 

Under the contract announced Wednesday, developer 174 Power Global will build the battery system, and Con Edison will bid its power into New York wholesale energy markets for seven years after it starts operations in 2022. After that, 174 Power will take over the battery system’s operations and wholesale market value.

The project being built at a former power plant site in Astoria, Queens is the first bulk energy storage system to be contracted under Con Edison’s request for proposals process launched last year. It’s the biggest utility-contracted battery in the state thus far, though independent power producer LS Power is planning to build at least 300 MW/1,200 MWh of batteries at its Ravenswood power plant in Queens.

Financial terms of the deal were not disclosed, although a Con Edison spokesperson said that the project was likely to come in at an industry-standard project cost of $1 million per megawatt plus an additional 25 percent premium for land and development costs in New York City. The state-owned utility New York Power Authority owns the land, which is the site of the former Poletti power plant.

The size of the battery, and the economics to justify it, represent a big departure compared to the batteries built in the state so far. The biggest to date is the 20 MW/16.5 MWh system developed near Albany by Key Capture Energy. In New York City, the biggest battery is the 4.8 MW/16.4 MWh Gateway Center project built by developer Enel X to serve Con Edison’s need to reduce grid congestion and defer grid upgrades as part of its Brooklyn-Queens Neighborhood Program. Grid reliability is also the core use case for Con Edison’s 2 MW battery at Ozone Park in Queens, and a 1 MW demonstration project with Shell/GI Energy in Staten Island.

[Jeff St. John]

More: Con Edison contracts its biggest battery to date in New York City

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