EXECUTIVE SUMMARY

US-based energy storage developer Flatiron Energy has secured contracts from the New York State Energy Research and Development Authority (NYSERDA) for two large-scale battery energy storage system (BESS) projects in New York City. The contracts cover Blue Spruce Storage and Palladium Storage, both located in the Bronx, under New York State’s inaugural Bulk Energy Storage solicitation.

The two projects are among eight lithium-ion battery storage developments selected through the competitive procurement process. Together, the eight selected projects are expected to contribute approximately 950 MW of additional energy storage capacity to New York’s electricity grid once fully operational. The announcement does not specify the individual capacities of Blue Spruce Storage and Palladium Storage.

Flatiron Energy has positioned both facilities to address electricity reliability requirements within New York City. Their locations in the Bronx are intended to support the city’s electricity network, particularly during periods when demand increases and additional power capacity is required.

The proposed battery storage systems are expected to provide electricity during peak consumption periods. This capability is intended to help maintain grid reliability while supporting electricity supply during periods of increased demand. The projects are also expected to contribute to reducing electricity costs for residents.

Another objective of the developments is to reduce dependence on fossil-fueled peaking units. These conventional generating facilities are used to meet electricity demand during periods of high consumption. Battery storage can provide an alternative source of electricity during such periods, supporting the integration of energy storage into New York City’s power infrastructure.

NYSERDA selected the projects as part of its first bulk energy storage solicitation, which covers large-scale lithium-ion battery installations across New York State. The procurement is intended to expand available storage capacity and support the electricity system as power requirements continue to increase.

NYSERDA President and CEO Doreen M. Harris acknowledged the selection of Flatiron Energy’s two projects and their expected contribution to New York City’s electricity network. NYSERDA identified peak-period capacity, improved grid reliability, reduced ratepayer costs and clean energy deployment as important outcomes of the selected developments.

Blue Spruce Storage and Palladium Storage represent Flatiron Energy’s participation in New York State’s bulk battery storage procurement program. Their selection establishes a contractual basis for the projects within the statewide initiative.

The announcement does not disclose the projects’ individual storage capacities, energy durations, investment values, construction schedules or expected commissioning dates. Further project information will be required to establish their individual contributions to the approximately 950 MW of selected statewide capacity.