New York Kicks Off Bulk Energy Storage Procurement

On July 28, 2025, Governor Kathy Hochul announced the launch of New York State’s first bulk energy storage competitive solicitation. In this initial solicitation (the 2025 “Index Storage Credit Request for Proposals,” or “ISCRFP25-1”), the New York State Energy Research and Development Authority (“NYSERDA”) intends to procure 1,000 megawatts (“MW”), give or take, of energy storage capacity. NYSERDA has not committed to a hard capacity target for this solicitation, but rather plans to procure a total of 3,000 MW of storage capacity through ISCRFP25-1 and two subsequent procurements.

When NYSERDA released the draft ISCRFP25-1 on May 13, 2025, we laid out the RFP’s important concepts, takeaways, and deadlines. For further background, please see our coverage of the Public Service Commission’s March 2025 order approving NYSERDA’s bulk storage implementation plan proposal and our analysis of NYSERDA’s proposal in November 2024. 

Here, we indicate where the final RFP diverges from the draft version. We show additions or changes in bold and italicize explanations of changes. Two key items to note:

• Though NYSERDA has shifted several dates back by approximately 3-4 weeks, NYSERDA projects that the solicitation process will still conclude, and awardees will be announced, before mid-year 2026, as projected in the draft RFP.
• Developers will submit their Step Two proposals in two parts: the Non-Price Submission will be due in December 2025, while the Price Submission will be due in January 2026.

• Proposer's Webinar: August 13, 2025
• Step One Application (the “Eligibility Application”) Submission Deadline: September 4, 2025
• NYSERDA Advances Proposers to Step Two: September 18, 2025
• Deadline to Submit Proposed Material Changes to ISC Standard Form Agreement: October 1, 2025
• Deadline to Submit Written Questions to NYSERDA: October 1, 2025
• Final Question Responses Posted by NYSERDA: October 22, 2025
• NYSERDA Posts Final ISC Standard Form Agreement: November 5, 2025
• Bid Fee Deadline: December 10, 2025
• Step Two Bid Proposal, Non-Price Submission Deadline: December 11, 2025
• NYSERDA Posts Final IndexB values applicable to CCIA Alternate Bids: December 18, 2025
• Step Two Bid Proposal, Price Submission Deadline: January 29, 2026. 
• NYSERDA Notifies Proposers of Provisional Awards: Expected Q1 2026
• Public Disclosure Event: Expected Q2 2026

• Step One: Application Eligibility: Proposers submit evidence of project eligibility and general information.
• Step Two: Bid Proposal: Qualified proposers submit detailed project information for evaluation in two parts: (i) the Non-Price Submission, due in December 2025, and (ii) the Price Submission (indicating the developer’s proposed Strike Price), due in January 2026. ISCRFP25-1 allows developers to submit multiple Alternate Bid Proposals, varying the capacity and duration of the proposed facility, as well as utilizing (or not utilizing) the CCIA (explained below). If a developer intends to submit Alternate Bid Proposals, they must indicate as much in the Step One submission.
• Evaluation: Proposals are evaluated on both price (60%) and non-price (40%) factors, including project viability, electricity system value, and societal/economic benefits.

• Projects “must utilize storage technology that is electrical, chemical, mechanical, or thermoelectric.” The RFP does not specify how technologies will be determined to be compliant with this requirement.
• Minimum project size is 5 MWac.
• Projects must interconnect in New York State and must be either currently participating in the NYISO’s Transitional Cluster Study or previously have accepted cost allocations pursuant to a previous Class Year Study. Proposals for 8+ hour-duration projects are not held to this standard, but must submit a plan demonstrating a “reasonable path” to interconnection. The requirement that projects interconnect in the state is arguably more stringent than the RES Tier 1 program’s requirement that projects deliver power into the New York Control Area, whatever their physical location.
• Only commercially deployed technologies are eligible (not pilots or prototypes). For 8+ hour-duration proposals, project technology must rate at Technology Readiness Level (“TRL”) 8 or higher on NYSERDA’s TRL calculator to be considered. This change from the draft RFP reflects NYSERDA’s adoption of a standard for evaluating the commercial readiness of a long-duration storage technology. 
• Projects must not have received certain NYSERDA or utility incentives, such as a contract under NYSERDA’s Market Acceleration Bridge Program; a REC contract with an unadjusted Energy Storage component; a contract under the Utility Bulk Dispatch Rights Program; or funding via the Residential and Retail Storage Incentives program or the VDER mechanism.
• Projects must be proposed to be in service by December 31, 2030. As in the draft RFP, the final RFP allows developers the opportunity to delay the in-service date if the project “has been delayed due to conditions beyond the control of the developer” so long as the project has commenced construction on or before December 31, 2030.

• Price Evaluation: Based on the proposed Strike Price for ISCs, adjusted for market forecasts and project availability. NYSERDA has added language in the final RFP explaining that NYSERDA forecasts for energy and capacity market prices will be used to calculate a Levelized Net ISC Cost (“LNISCC”) for each proposal, to provide for “equitable comparison” across proposals featuring different pricing structures, ISC quantities, and contract tenors. NYSERDA will also assume 95% operational availability for projects.
• Non-Price Evaluation: Includes project maturity, interconnection and permitting status, safety and security planning, supply chain and procurement, community engagement, development experience, financing plan, and climate resiliency. 
• Economic Benefits: Proposals are scored on the level of economic benefits to New York, with extra scoring weight for benefits to disadvantaged communities. The final RFP removes draft language that would have provided extra scoring weight for involvement by Minority and Women-Owned Business Enterprises and Service-Disabled Veteran-Owned Businesses.

• Component Cost Indices Adjustment (“CCIA”): Provides developers the option to submit a price structure that adjusts for inflation up to a 12% cap above (or below) the original Strike Price. The CCIA, which applies only to lithium-ion projects, replaces the proposed Inflation Risk Adjustment Proposal (IRAP), which limited inflation adjustments to 10% of the Strike Price. Proposals featuring non-lithium-ion technology will have an opportunity to propose a tech-specific CCIA formula to NYSERDA.
• Geographic and Duration Targets: At least 35% of capacity in NYISO Zones G–K, with a focus on long-duration storage (8+ hours) and peaker plant displacement for those Zones. Of the 3,000 MW to be procured across the three solicitations (ISCRFP25-1 and subsequent), NYSERDA aims to procure 20% long-duration storage, but may not procure 20% long-duration storage in each procurement.
• Contract Tenor: Up to 15 years for lithium-ion projects, and up to 25 years for non-lithium-ion projects.
• Prevailing Wage and Labor Requirements: All construction must comply with prevailing wage or project labor agreement requirements.

• Provisional awardees must provide contract security and finalize agreements with NYSERDA.
• Confidentiality is required until public disclosure after all contracts are executed.
• Ongoing reporting and compliance with safety, labor, and economic benefit commitments are required.