Full Title: As US Northeast Green Energy Grows, Hybrid Solar Niche Poised to Expand
Author(s): Steve Piper
Publisher(s): S&P Global
Publication Date: January 16, 2025
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Description (excerpt):
The US Northeast, including New York and the six states that make up New England, features support for the key revenue streams that underpin solar-plus-storage investment, including organized capacity markets, renewable energy credit markets and procurement goals for battery storage specifically. While these factors drive a forecast of stable revenues at reasonable confidence, they do not by themselves ensure successful investments under forecast market conditions. Capacity revenues to battery storage facilities are subject to some uncertainty, and the presence of competitive hydroelectric generation in the region, including pumped storage, constrains growth in arbitrage revenues evident in other markets. In comparing the power markets of the New York ISO and ISO New England, increasing arbitrage and capacity revenues from storage offset declining solar wholesale revenues and the expiration of production tax credits.