US tender alert: Massachusetts takes steps toward 40 GWh energy storage

Massachusetts is initiating efforts toward its goal of procuring 5 GW of energy storage by 2030. A draft RFP for 1.5 GW of four- to 10-hour energy storage resources has been released.

The exact release date for the Long-Term Contracts for Energy Storage Projects remains “TBD,” [to be determined] though a tentative schedule in the draft suggests a public release of the RFP on July 31, 2025.

The RFP includes scheduled periods for questions and feedback through the fall, with proposal submissions due by Sept. 10. Project selections will be announced approximately three months later, on Dec. 9, 2025.

The procurement will include National Grid, Eversource Energy, and Unitil, the three investor-owned utilities responsible for the majority of Massachusetts’ electrical infrastructure. These utilities will procure 45.1%, 53.89%, and 0.97%, respectively, of the total 1.5 GW capacity.

Projects must range in size from 40 MW to 1 GW. Bidders will pay a fee of $500 per megawatt, potentially generating $750,000 if the RFP is fully subscribed. The program is expected to attract significant interest, possibly leading to over-subscription. Upon executing long-term storage contracts, developers must provide a security deposit of $40,000 per megawatt, totaling up to $60 million.

With estimated costs around $200/kWh, total project value could range from $2.8 billion to $7 billion, depending on the chosen storage capacities.

A state-commissioned third-party analysis estimates annual revenue at just over $220/kW, primarily derived from the CPS program. CPS incentivizes energy storage during “seasonal peak periods,” identified by the state as times of peak demand and emissions. Massachusetts established the clean peak program in 2018, following Vermont’s regional lead, with its Tesla battery installations.

Revenue under CPS is paid via Clean Peak Energy Certificates (CPEC), each representing 1 MWh of certified clean electricity delivered during the seasonal peak period.

Some of the project evaluation considerations include:

• Bid value under the CPEC program
• Evaluation of resilience and reliability value adders
• Proximity to major electrical loads
• Proximity to intermittent renewable energy sources
• Separation from other energy storage systems
• Safety measures and stakeholder engagement
• Credibility of proposed commercial operation dates, based on:
  • Initiation and completion plans for permitting
  • Resource and environmental assessments
  • Detailed financing information and plans
  • Installation and interconnection strategies
  • Progress in acquiring necessary real property rights
  • Material progress toward the acquisition of all real property rights
• Viable installation and electrical interconnection plans

Proposals must adhere to organizational standards outlined in the RFP package (below), which also contains contract templates guiding the procurement process.

The energy storage procurement aligns with Massachusetts’ 2024 legislation, An Act Promoting a Clean Energy Grid, Advancing Equity and Protecting Ratepayers, which directs the state to procure energy storage totaling 5 GW by July 31, 2030.

The procurement targets 3.5 GW of mid-duration storage (four- to ten-hour), totaling 14 GWh to 35 GWh. An additional 750 MW will be long-duration storage (10- to 24-hour), and another 750 MW will require capacities exceeding 24 hours.

Overall, the initiative complements the 5 GW peak output with at least 39.5 GWh of storage capacity. Notably, New England’s peak load has significantly dropped, from nearly 25 GW five years ago to just below 4 GW, driven largely by growing solar installations.

The current law expands upon the 2018 goal of deploying 1 GWh of storage by Dec. 2025. As of Feb. 15, 2025, Massachusetts utilities reported “644 MWh of installed energy storage with an additional 12,932 MWh of storage in the pipeline.”

From pv magazine USA.