Support of Major Battery Energy Storage Project in New York City

New York City Industrial Development Agency Closes its Largest Battery Storage Project in Astoria, Queens; NYC Project Will Produce 100 Megawatts of Electricity, Enough to Supply Tens of Thousands of Households

Mobilizing the NYCIDA for Battery Storage Will Ultimately Unlock Additional Storage Capacity and Underpin a Stronger and More Efficient Renewable Energy Sector

Today, New York City Economic Development Corporation (NYCEDC) and the New York City Industrial Development Agency (NYCIDA) announced the advancement of a key commitment in New York City’s Green Economy Action Plan to develop a clean and renewable energy system. NYCIDA closed its largest battery energy storage project to date, the East River Energy Storage Project, located on an industrial site on the East River in Astoria, Queens. When built, the facility will be able to hold up to 100 megawatts (MW) and power over tens of thousands of households. Once completed, the project will be amongst the largest battery storage installations in New York State.

In February, Mayor Adams unveiled New York City’s Green Economy Action Plan which lays out a series of commitments and strategies to grow the city’s green economy and train and position New Yorkers of all backgrounds to benefit from the nearly 400,000 projected green collar jobs in New York City by 2040. A key commitment in the Action Plan is to promote and deploy NYCIDA tax incentives to support battery storage capacity projects and support other green economy uses throughout the five boroughs. Since January, NYCIDA has supported five battery storage projects throughout the five boroughs.

East River ESS, LLC, an affiliate of 174 Power Global, will build the East River Energy Storage System on land leased from New York Power Authority (NYPA), where the Charles Poletti power plant was formerly located. The facility will serve as a large-scale battery energy storage system capable of charging from, and discharging into, the New York power grid. 

When fully functional, the 100MW battery energy storage project will be able to discharge electricity to the grid particularly during peak demand. This will particularly benefit New York’s environmental justice communities, which bear the worst repercussions from peaker plant pollution that contributes to chronic health disparities. The system will be enclosed in multiple containers totaling approximately 124,000 square feet on a parcel of land at 17-09 31-03 20th Avenue in Astoria, Queens. The batteries will produce no emissions and little noise and connect to a nearby Con Edison transmission substation.

The project will be operated by 174 Power Global, in partnership with Con Edison, under the terms of a multi-year contract with Con Edison awarded under a competitive solicitation for Bulk Energy Storage program authorized by the New York Public Service Commission. Once completed, the project will be largest battery storage installation in New York City and one of the largest in New York State, and it alone will meet one-fifth of the city’s 500MW near-term goal for citywide battery storage capacity, holding enough electricity to supply tens of thousands of New York City households during a peak summer day.

As part of the project, 174 Power Global will be subject to an M/W/DBE sub-contractor participation goal. Additionally, 174 Power Global has an ongoing partnership with the Variety Boys & Girls Club in Astoria, Queens to provide annual STEM education, green energy hands-on activity, and mentorship to local students.

Construction for this project is expected to start in the first quarter of 2025.

NYCIDA helps to lower the cost of capital investment through discretionary tax benefits. The IDA has supported approximately 254MW of battery storage capacity in New York City, generating more than $400 million of private investment and supporting progress toward the city’s target for energy storage capacity (500MW installed by 2025). Unlocking additional storage capacity will ultimately underpin a stronger and more efficient renewable energy sector. IDA incentives may also be used to support electric vehicle freight charging, cold storage retrofits, and other green economy uses.  Battery energy storage systems in New York City are rigorously regulated, with oversight from the safety industry, federal, state, and local authorities. All code, location, spacing, and other local requirements must be met. In addition to general code compliance, additional site-specific protections may be required to be addressed by operations and emergency procedures, and fire service coordination. 

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity, build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city’s future economy. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.

About NYCIDA 
New York City Industrial Development Agency (NYCIDA) supports business growth, relocation, and expansion across the five boroughs by lowering the cost of capital investment. NYCIDA’s tax incentive programs bolster the local economy, create jobs for New Yorkers, and uphold the city’s position as a global business hub.