Dissecting the Levelized Cost of Storage—“Adders” for New York City

Abstract

The mass deployment of energy storage and distributed energy resources has become a major goal across several states in the United States. However, the viability and reality of such a goal in New York City has been put in question as possible financial burdens and execution risks are still unclear, while policies and regulations are still not fully settled. This paper provides a foundational overview of the Lazard LCOS study with emphasis on forward states which have successfully implemented mass deployment of energy storage technologies. “Adders” are related to the practicality in deploying these systems in a highly regulated and densely populated urban area such as New York City. It also discusses details on the typical financial structure/incentives that support the policies and regulations that allow for achieving these clean energy goals. Furthermore, many states have begun to focus on alternative battery technologies rather than just Li-ion, and as such, New York State is following suit. Utilizing several similar works that have begun to touch on these considerations individually and various accredited resources, this paper discusses “adders” for New York City (and New York State as a whole) as they develop similar approaches that are unique to them and offers helpful conclusions and recommendations to achieve their deployment goals.