NineDot Gets $85M Loan for 11 NYC Battery Storage Facilities

NineDot Energy, a rapidly expanding developer of community-accessible clean energy projects in NYC, has secured $85M to fund the completion of 11 new battery storage facilities that will provide renewable energy to existing grid infrastructure during peak demand,

Funding for the renewable energy storage facilities—which will be located in The Bronx, Staten Island, Queens and Long Island—was provided by CIT, an energy-focused division of Citizens Bank, and SMBC, a Japan-based global banking and financial services firm.

“Four months ago, we unveiled our first-of-its-kind battery storage site in the Bronx. With this [project financing], we will accelerate the growth of our community energy pipeline and implementation, bringing the benefits of distributed, local battery storage solutions to the broadest range of organizations and communities in the New York City region.” said NineDot Energy CEO David Arfin, in a statement.

As the building community prepares for decarbonization initiatives that will comply with new Local Law 97 regulations regarding emissions reductions, purchasing carbon credits for renewable energy storage sites like those being built by NineDot Energy give property owners a wider range of options.

In addition to the battery energy storage sites, NineDot has been developing a solar canopy for renewable energy generation as well as infrastructure for electric vehicle charging stations.

NYC has set a goal of 100% reliance on carbon-free sources of electricity by 2040 and a net-zero carbon economy by 2050. The lion’s share of the carbon-free electricity will be delivered to the city by long-distance transmission lines that will deliver hydropower to the Big Apple, a $4B program initiated by Gov. Hochul.

New York State has set a goal of reducing greenhouse gases by 40% by 2030 and no less than 85% by 2050. Hochul also has introduced an initiative to double the state’s 2030 energy storage capabilities from 3 gigawatts to 6 gigawatts, an amount capable of powering nearly 1.2M homes.

Renewable energy credits are limited to energy generating and/or storage facilities that are located within the NYC grid., per this language in Local Law 97:

“Renewable energy credits (RECs) are limited to energy generated or sinking into the NYC grid. The law allows up to 100% offset of building emissions through the purchase of RECs from a source located in, or whose output directly sinks into, the zone J load zone, which is NYC’s electric grid zone.”

In addition to providing locally stored clean energy eligible for carbon credits, the storage stations also help avoid power outages and service interruptions during peak demand periods.

The typical battery storage facility consists of a series of lithium-ion battery backs set up in a three-megawatt system on a parcel of about 7,500 SF. The batteries are recharged at night, when usage is low.

In an interview with the NY Times last month, NineDot discussed the challenges of finding suitable site for battery storage facilities, which need to have grid connectivity and meet Fire Department regulations for handling batteries.

“A lot of times you’re looking at the lot’s topography and size, and then literally looking up to see what kind of power lines are nearby,” Adam Cohen, the company’s chief technology officer, told the newspaper.

Consolidated Edison, NYC’s largest utility also is busy building battery storage sites around the city.