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New York State’s Microgrid Development Incentives: NYSERDA Rolls Out Stage 2 of NY Prize Competition

On April 20th, the New York State Energy Research and Development Authority (NYSERDA) issued a request for proposals (RFP) for Stage 2 of the NY Prize Community Grid Competition. The NY Prize Competition supports the development of community microgrids in order to enhance local power supply reliability and resiliency, including minimizing power outages associated with emergencies, natural disasters, etc. Ultimately, up to $40 million will be made available to develop such microgrids.

Stage 2 is part of a three-step process: under Stage 1, up to $100,000 was awarded to each of 83 proposals to conduct microgrid feasibility studies; Stage 2 focuses on detailed engineering design, financial, and business plans; and Stage 3 will award up to $5 million for seven projects for build-out and construction and post-operational monitoring support. 

Communities are invited to submit proposals for the Stage 2 award by October 12, 2016. Participation in Stage 1 is not a prerequisite to responding to the Stage 2 RFP; however, Stage 2 proposals must include a completed feasibility assessment, including a benefit cost analysis, that mirrors the Stage 1 assessment. Proposals must introduce a minimum 15% cost-sharing of total project costs. Up to ten proposals will be selected and approximately $8 million is available in funding for Stage 2.

A Stage 2 proposal should offer a clear understanding of how the Detailed Engineering Design and Financial and Business Plan Assessment will be addressed for the proposed microgrid.  Stage 2 demands greater detail on key issues in order to develop a microgrid, including ownership structure, financing and sources of funding, utility interconnection hurdles, whether the viability of the microgrid is dependent on special tariff arrangements, investment credits, or subsidies, and appropriate operating arrangements with customers served by the microgrid.  Proposals must also include budgeting work plans for specific financial milestones and cost-sharing estimates.  In addition, proposals should demonstrate careful consideration of all procurement laws that may apply through Stage 3 and project implementation. An applicant should outline a rational and viable path to address these issues. The feasibility assessment report checklist provides a detailed overview of these requirements.

A Stage 2 Outreach and Informational Session will take place in May 2016, and Stage 2 contracts are expected to be awarded in December 2016. The Stage 3 process is anticipated to start in January 2018.

© 2020 Beveridge & Diamond PC National Law Review, Volume VI, Number 125



About this Author

Stephen L. Gordon Environment & Land Use Attorney Beveridge & Diamond New York, NY

Steve’s practice includes providing legal services to local government, energy, real estate development, natural resource, manufacturing and waste management companies in all aspects of environment and land use law.

Representative matters during the past several years include numerous administrative and judicial proceedings relating to hazardous waste and sanitary landfill issues, environmental impact statements and public hearings for the siting of major electric generating facilities, large commercial and industrial real estate developments, major industrial waste disposal...

Michael G. Murphy Energy & Land Use Attorney Beveridge & Diamond New York, NY

Michael provides concrete, pragmatic advice that helps clients solve problems and achieve their goals in matters involving energy, land use, permitting, compliance, contracts, and litigation.

He worked for several years in construction before earning his undergraduate degree in Environmental Science and making a decision to enter the practice of environmental law. Today, he follows a similar non-traditional path in advising his clients—eschewing cookie-cutter approaches. He dives into the factual and legal issues, learning what is unique about his client, and tailors his advice to...

John H. Paul Environmental & Energy Attorney Beveridge & Diamond New York, NY

John's practice focuses on environmental and energy law, project development, and environmental quality review of project proposals.

He assists clients in permitting, regulatory compliance, and enforcement matters involving waste management and disposal, hazardous wastes, bulk storage, wastewater, and air emissions. He advises clients with regard to remediation of contaminated properties and brownfield development, particularly on properties involving multiple ownership interests and complicated histories. He also advises and represents property owners and...

Sarah A. Kettenmann Environmental Attorney Beveridge & Diamond New York, NY

Sarah uses her knowledge of environmental law and the physical sciences to help clients solve complex problems in a conservation-minded manner.

She maintains a diverse environmental practice, which includes litigation matters involving toxic torts and products liability and class action litigation concerning environmental and regulatory claims. Her regulatory practice includes advising clients on compliance with, and enforcement of, land use restrictions and remediation, and due diligence for waste facility permits under federal and state statutes. She also counsels clients on...