Largest non-wires solution energy storage system constructed in NYC

(Credit: Agilitas)

Agilitas Energy, an integrated developer, builder, owner, and operator of distributed energy storage and solar photovoltaic (PV) systems in the northeastern U.S., announced it has completed construction of the largest standalone, non-wires solution (NWS) energy storage system (ESS) in Con Edison’s New York City and Westchester County service area.

The grid-scale project is located in the Long Island City neighborhood in the borough of Queens, and will help Con Edison meet peak loads for customers with 4.8 MW and 23.7 MWh of capacity.

Agilitas Energy has a 10-year contract with Con Edison to discharge up to four hours of stored energy during its peak demand period from May 1 through September 30. Con Edison can make daily requests for power with advance notice during a specified timeframe.

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“New York City is arguably the most complicated and challenging urban area to build an energy storage project with its regulatory hurdles and zoning restrictions, and I’m proud that our team’s diligence, ingenuity and leadership allowed us to become one of the only companies to successfully do so,” said Barrett Bilotta, President, CEO and co-founder of Agilitas Energy. “This energy storage system will serve as a huge win for consumers as our project will enhance reliability, support the transition to a clean energy future and help defer the costs of building more infrastructure.”

The project will charge the batteries from the grid at off-peak hours, when there is less demand for power and costs are lower, and then discharge that energy to Con Edison customers when demand for power is higher. The project follows New York State’s mandate to accelerate the proliferation of storage across its grid, in pursuit of Gov. Kathy Hochul’s targets set last year to help fuel the energy transition.

The ESS was built to remain operable when the grid is under stress due to extreme heat, as customers use their air conditioners to stay comfortable. In addition to fulfilling the May to September contract commitment to Con Edison, the project will sell energy into New York State’s wholesale market. The project is expected to be connected to the grid in 2024.

Non-wires alternatives

In recent years, non-wires alternatives (NWAs) have been gaining traction as a viable solution for reducing the need for costly transmission and distribution upgrades. Battery storage is one of the most promising NWAs, providing numerous benefits such as increased reliability, improved grid stability, and reduced greenhouse gas emissions.

NWAs enhance grid resilience by reducing the risk of outages during extreme weather events. Distributed energy resources, such as solar and wind, can continue operating even when centralized power plants are affected. They’re often also more cost-effective than traditional infrastructure upgrades by deferring capital expenditures

The Northeast has been proactive in adopting policies that promote the use of NWAs. States like New York, Massachusetts, and Vermont have set ambitious clean energy targets, and NWAs are seen as instrumental in achieving these goals.

But the path forward for NWAs is far from clear. An ongoing debate pits project developers and asset owners against utilities over third-party ownership, utility control, interconnection, and revenue stacking. Moreover, NWAs have yet to emerge beyond one-off pilots and RFPs into a scalable solution to address grid constraints.

Agilitas’s portfolio

Last year, Agilitas announced it had raised $350 million of equity to expand its portfolio, with a pipeline of more than 500 MW of distributed and utility-scale energy storage and solar PV projects. The investment came from funds managed by CarVal Investors L.P, and the total amount may be upsized to $650 million upon completion of certain projects, the companies said.

Funds managed by CarVal have assumed a minority position in Agilitas Energy and the companies have established a joint venture to own and operate the energy assets.

In its largest deal since raising the $350 million, Agilitas said in March 2023 it would pay $75 million to acquire six standalone energy storage system (ESS) projects in the greater Houston area from Gulf States Renewable Energy’s GSR Energy business unit.

Each of the six projects has an identical design with battery supply from BYD Energy batteries and a system size of 9.96 MW/20.721 MWh. Two of the six projects are expected to begin commercial operation in 2023, with the other four in 2024. Agilitas Energy said it expects to buy each of the six projects when they are fully permitted and ready for construction.