Long Island Fossil Peaker Replacement Study
This Strategen report was developed for New York Battery and Energy Storage Technology Consortium (NY-BEST).
The study examines the cost-effectiveness of retiring an aging and inefficient fleet of fossil-fueled peaking power plants and replacing them with energy storage. Strategen’s analysis shows that replacing Long Island, New York’s aged, polluting peaker fleet will reduce energy costs, create jobs, build a more resilient power system, reduce air pollution in Potential Environmental Justice Areas and lower greenhouse gas emissions - a “no regrets” solution for Long Island and New York.
Key results of this study show:
It is feasible and cost-effective to replace 1,116 MW of Long Island’s fossil-fueled peaker plants with energy storage by 2023 and over 2,300 MW by 2030.
Potential savings of up to $393 million of savings can be achieved for LIPA customers over the next decade by retiring and replacing aging fossil assets.
Replacing peakers with storage will eliminate 2.65 million metric tons of CO2, 1,910 tons of NOx, and 639 tons of SO2 of emissions annually, resulting in societal benefits of $163 million annually.
Of the 2,300 MW of fossil peaker plant replacements, 334 MW could be retired and replaced immediately, and another 782 MW could be phased out by 2023, coinciding with the implementation of local emission control regulations and the expiration of existing LIPA long-term contracts.
In the East End of Long Island there is a near-term opportunity for up to 90 MW of fossil peakers to be displaced with energy storage, and additional opportunities over time as local constraints are addressed.