Orange and Rockland Utilities, the largest electric utility company in New York, will collaborate with Tesla on a new energy storgae project. The Project will “develop and test methods for how to mitigate storage implementation barriers, in order to support the acceleration of wide-spread storage deployment in New York.”
The project proposal was submitted for approval by the New York State Public Service Commission this month.
The Project will consist of a 4MW/8MWh portfolio of aggregated batteries. Individual battery sites will be distributed and located either behind-the-meter of commercial and industrial customers or co-located with distribution-connected remote solar projects. The battery installations will be developed, designed, installed, operated, and maintained by Tesla.
Tesla’s participation in the proposed NY battery solution comes at a time when Tesla is attempting to increase its market of the energy sector. In Tesla’s recently released report, the company said that it is aiming to deploy at least three times the storage capacity it rolled out in 2017. Tesla seeks to accomplish this by engaging in more energy projects.
The “$5.6 million project could pay for itself rather quickly by creating over $700,000 in value per year in the New York Independent System Operator’s energy, capacity and ancillary services markets.”