Energy Storage Market in New York Poised for Double Digit Growth

Jan. 20, 2017
New York is positioned to capture significant chunks of the energy storage market nationally and worldwide with double digit growth forecasted, according to a new state report.

New York is positioned to capture significant chunks of the energy storage market nationally and worldwide, according to a new state report.

“The Energy Storage Industry in New York State: Recent Growth and Projections 2015 Update” forecasts that the state could capture 15 percent of the North American energy storage market and 5 percent of the global market by 2025.

The state already held five percent of the North American energy storage market as of 2015, and 1.5 percent of the worldwide market.

The growth comes as New York strives to position itself at the forefront of the distributed energy and microgrid revolution. Energy storage is a crucial component of the kind of distributed electric grid the state is trying to create through its evolving energy policy, Reforming the Energy Vision, or REV.

Energy storage employed about 3,900 workers in New York and generated revenues of about $910 million, as of 2015. A forecast to 2030 shows 27,000 jobs in energy storage and revenue reaching $9 billion.

The state is poised for double digit revenue growth in its energy storage market, especially for electric grid technologies. New York’s $175 million market for these technologies in 2015 grows to $1.3 billion by 2020, a 53.2 percent compound annual growth rate (CAGR) and reaches $5.4 billion by 2030, a 27 percent CAGR over 15 years.

Forecasts a 53.2 percent annual growth rate…

Growth is slower, but still significant for energy storage technology used in electric vehicles and transportation. New York’s share of that market rises from $132 million in 2015 to $749 million in 2020 for a 35 percent CAGR. It reaches $1.8 billion by 2030, a 17.2 percent CAGR.

The report points to policy wildcards that could influence the growth, particularly how quickly the state implements REV and how markets react to a state goal to make 50 percent of its electricity from renewables by 2050.

New York’s energy storage market is being bolstered by the New York Battery and Energy Storage Technology Consortium (NY-BEST), created in 2010 by the New York State Energy Research and Development Authority (NYSERDA). The consortium now includes Fortune 500 companies, start-ups, universities, national research centers and laboratories spanning all facets of the energy sector.

“New York State has become a hub for energy storage technologies, creating new, skilled technology jobs and meeting the needs of utilities, building owners, manufacturers and other large power users,” said John Rhodes, president and CEO of NYSERDA, which commissioned the report from Massachusetts-based Industrial Economics.

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New pledge for electric vehicle charging

NYSERDA says that it has invested in more than 50 energy storage technology development projects across the state. It also is working to reduce soft costs associated with distributed energy storage systems by 33 percent in five years.

Separately,  Governor Andrew Cuomo said in his recent state-of-the-state address that NYSERDA and the New York Power Authority (NYPA) will build 500 workplace electric vehicle charging stations by 2018.

NYPA will invite municipalities to tap into a master contract that offers better pricing for the supply, installation and maintenance of charging stations. Local governments can also obtain state-funded rebates from the Department of Environmental Conservation or NYSERDA. The rebates will cover up to 80 percent of the installed costs.

“We want to accelerate the use of electric vehicles and encourage drivers across the state to consider ownership,” said Gil Quiniones, NYPA president and CEO. “Governmental entities are a logical place to start cultivating that interest so we’ve put together a benefits package that makes it easy and economical for them to join in the push for more widespread use of clean technologies.”

In all, Cuomo aims to have 3,000 EV charging stations on line by 2018. More than 1,100 have been installed since 2013 —including those by municipalities and businesses — bringing the state total to about 1,600 across the public and private sectors.

Track news about the energy storage market by following Microgrid Knowledge on Twitter @MicrogridNews.

About the Author

Elisa Wood | Editor-in-Chief

Elisa Wood is an award-winning writer and editor who specializes in the energy industry. She is chief editor and co-founder of Microgrid Knowledge and serves as co-host of the publication’s popular conference series. She also co-founded RealEnergyWriters.com, where she continues to lead a team of energy writers who produce content for energy companies and advocacy organizations.

She has been writing about energy for more than two decades and is published widely. Her work can be found in prominent energy business journals as well as mainstream publications. She has been quoted by NPR, the Wall Street Journal and other notable media outlets.

“For an especially readable voice in the industry, the most consistent interpreter across these years has been the energy journalist Elisa Wood, whose Microgrid Knowledge (and conference) has aggregated more stories better than any other feed of its time,” wrote Malcolm McCullough, in the book, Downtime on the Microgrid, published by MIT Press in 2020.

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