The VPP Push: Assembly Bill A.8429
Assemblymember Anna Kelles introduced legislation in March 2026 to establish a statewide framework for Virtual Power Plants — networks of distributed batteries, EVs, smart thermostats, and solar+storage systems that can be aggregated to provide grid services. Under the bill:
- NYSERDA program: The New York State Energy Research and Development Authority would create a formal VPP development program
- Reliability objective: VPPs would supplement traditional generation to meet the state’s CLCPA clean energy mandates without overbuilding centralized resources
- Federal backing: The U.S. Department of Energy estimates that scaling VPP capacity could save billions annually in grid infrastructure costs by 2030
Governor Hochul has separately proposed state funding for VPPs, signaling bipartisan alignment on the technology even as the implementation details remain contested.
ConEd’s Grid Overload Warning
Con Edison has pushed back against the battery storage boom, arguing that:
- Local infrastructure limits: Many distribution circuits in NYC cannot absorb the charging load from large battery installations without costly upgrades
- Overnight charging peaks: Battery charging could create new overnight load peaks, shifting rather than reducing grid stress
- Upgrade cost allocation: ConEd requires developers to fund significant infrastructure upgrades before interconnection — a policy developers call a de facto barrier
The Developer Counterattack: “Unlawful and Arbitrary”
In March 2026, NY-BEST (New York Battery and Energy Storage Technology Consortium) and NYSEIA (New York Solar Energy Industries Association) filed a petition with the Public Service Commission calling ConEd’s interconnection review standards “unlawful and arbitrary.” The petition argues ConEd is applying standards beyond its regulatory authority to slow battery deployment.
NYISO Queue: 83 Projects, 11,050 MW
As of March 2026, the NYISO interconnection queue contains 83 planned battery storage projects with a combined capacity of 11,050 MW. Seven projects are expected to come online within the next year. This pipeline is critical as NYISO projects electricity demand could rise by nearly 70% by 2030 driven by electrification and data center expansion.
What This Means for Commercial Buyers
- Rate relief timing: Battery storage integration promises to reduce peak pricing and congestion costs. But the ConEd dispute could delay interconnection by 1-2 years in NYC, pushing rate relief into 2028+.
- Behind-the-meter opportunity: The VPP legislation creates a framework for commercial buildings to monetize on-site batteries, EV chargers, and load flexibility through grid services revenue.
- Summer 2026 risk: NYISO projects a potential summer shortfall in NYC and Long Island. Battery delays exacerbate the gap between retiring generators and replacement capacity.
- Demand response value: With or without batteries, load flexibility programs (NYISO ICAP, ConEd DLRP) become more valuable as the supply-demand margin thins. C&I facilities should evaluate enrollment now.
- PSC ruling impact: If the PSC sides with developers against ConEd, expect accelerated interconnection timelines and potential rate adjustments as new capacity enters the market.
Source: NYISO; NY-BEST/NYSEIA PSC Petition; NY Assembly Bill A.8429; Con Edison filings; Governor Hochul office; US DOE VPP analysis.