Foley & Lardner LLP Senior Counsel Joel Meister is quoted in the Utility Dive article, “NY PSC gives Con Edison, Central Hudson, other utilities more time to procure 350 MW energy storage,” discussing the decision from the New York Public Service Commission (NY PSC) to extend the period for utilities in the state to come up with additional energy storage dispatch.
Developers “will certainly breathe a sigh of relief that they have a few more years to develop and construct products,” Meister said. “It remains to be seen how the industry may respond to contract terms of up to 15 years. Solar and wind developers certainly benefited from long-term power purchase contracts to attract financing. But storage presents unique operation and maintenance challenges by comparison, which will vary by use case.”
Despite rapid growth in deployment, storage is still a relatively new sector with “comparatively modest operational histories for investors and lenders to draw upon with independent engineers,” Meister added.
To read Meister’s full explainer on NY PSC again modifying utility procurement requirements to support an ambitious energy storage roadmap, visit Foley’s Renewable Energy Outlook blog.