Maximizing Revenue from Electrical Energy Storage Paired with Community Solar Projects in NYISO Markets

Abstract

The New York State Public Service Commission recently made significant changes to the compensation mechanisms for distributed energy resources, such as solar generation. The new mechanisms, called the Value of Distributed Energy Resources (VDER), alter the value proposition of potential installations. In particular, multiple time-of-generation based pricing alternatives were established, which could lead to potential benefits from pairing energy storage systems with solar installations. This paper presents the calculations to maximize revenue from a solar photovoltaic and energy storage system installation operating under the VDER pricing structures. Two systems in two different zones within the New York Independent System Operator area were modeled. The impact of AC versus DC energy storage system interconnections with solar generation resources was also explored. The results show that energy storage systems could generate significant revenue depending on the pricing alternative being targeted and the zone selected for the project.