BATTERY ENERGY STORAGE SYSTEMS (BESS)

Frequently Asked Questions

What is a Battery Energy Storage System (BESS)?

A BESS is a large-scale lithium-ion battery installation that stores electricity and releases it back to the grid. These systems typically consist of shipping container-sized units filled with thousands of battery cells, similar to what's in electric vehicles but on a much larger scale.

Why are BESS being installed in NYC?

Con Edison uses BESS through its Non-Wires Solutions (NWS) and Brooklyn-Queens Demand Management (BQDM) programs to avoid building expensive traditional infrastructure like substations. The BQDM program, launched in 2014, was a $200 million alternative to a $1.2 billion substation. Instead of traditional infrastructure expansion, Con Edison deploys cheaper distributed energy resources. Private companies profit by buying electricity when prices are low and selling it back when prices are high (energy arbitrage).

How do companies make money from BESS?

Companies profit through multiple revenue streams:

• Energy arbitrage: Buy electricity at off-peak prices ($0.05-$0.10/kWh) and sell at peak prices ($0.20-$0.50/kWh)
• Capacity payments: Payments from Con Edison for being available during peak demand
• Grid services: Revenue from frequency regulation and voltage support
• Incentive programs: $2,500-$3,000 per kW from Con Edison's BQDM and NWS programs plus NYSERDA grants

What is thermal runaway?

Thermal runaway is a dangerous chain reaction where a lithium-ion battery cell overheats uncontrollably. One failed cell can cause adjacent cells to overheat, creating a cascade effect that spreads through hundreds of cells. This releases hot flammable gases that can cause fires that burn for days, explosions, and toxic emissions including hydrogen fluoride and hydrogen chloride. According to FEMA, these fires are "extremely difficult to extinguish" because they are chemical reactions that continue even when external oxygen is removed.

Have there been BESS fires?

Yes. Recent incidents include:

• South Korea (2017-2019): Over 27 BESS fires prompted a comprehensive government investigation
• McMicken, Arizona (April 2019): Facility explosion injured four firefighters when accumulated flammable gases ignited
• Warwick, NY (2023): Fire burned for two days in a mixed-use area
• Moss Landing, CA (January 2025): 1,500 residents evacuated due to thermal runaway event
• Warwick, NY (December 2025): Second major fire in same town

What environmental risks do BESS fires pose?

When firefighters use water to battle BESS fires, the runoff becomes contaminated with heavy metals (cobalt, nickel, manganese, lithium), toxic chemicals (hydrogen fluoride, sulfuric acid), and organic pollutants (dioxins, furans). This contaminated water can:

• Flow into storm drains that discharge to rivers and bays without treatment
• Pollute surface water and aquatic ecosystems
• Seep into groundwater through soil infiltration
• Threaten drinking water sources

According to MDPI 2024 research, 64% of BESS owners are considering water containment systems—acknowledging the serious environmental risks. However, "considering" means many existing facilities currently lack adequate containment.

Can communities stop BESS from being installed in their neighborhoods?

• Currently, no. Under NYC zoning, BESS are classified as "Use Group 6 (Utility, Small)" and can be installed as-of-right in many commercial and manufacturing districts, and by special permit in residential districts.
• Community boards have NO notification requirement and NO approval authority whatsoever. Residents often learn about BESS installations only after construction has begun.

The current approval process involves only:

• FDNY (fire safety compliance)
• Department of Buildings (building code compliance)
• Con Edison (grid interconnection)

There are no mandatory public hearings, no requirement for community input on location choices, and no alternatives analysis when residential areas are proposed.

What is the proposed protective legislation?

Multiple NY State bills have been proposed to restore community voice:

Senate Bills S.7197 / Assembly Bill A.6955 would require:

• Minimum 1,000-foot setbacks from homes, schools, and farms
• Mandatory public hearings before permits
• Restriction of large BESS (5+ MW) to industrial zones only
• Financial surety requirements for cleanup and liability

Senate Bills S.5208 / S.6605 would require:

• Community board notification of planned BESS installations
• Public notice and meetings before siting decisions
• Annual safety inspections by community boards

CRITICAL: None of this legislation has been enacted—communities currently have zero voice in BESS siting decisions.

How will BESS affect my property value?

Proximity to industrial facilities typically decreases property values. Communities report concerns about:

• Decreased desirability—buyers reluctant to purchase near battery storage
• Difficulty selling properties—longer time on market, fewer qualified buyers
• Lower appraisals due to perceived safety risks
• Higher insurance rates for homeowners near BESS sites
• Stigma associated with hazardous infrastructure

What will BESS do to quality of life?

Residents near BESS may experience:

• Visual blight: Industrial containers in residential areas
• Noise: 24/7 operation of cooling systems and transformers
• Traffic: Increased truck traffic during construction/maintenance
• Light pollution: Security lighting operating throughout the night
• Safety concerns: Evacuation plans, anxiety about thermal runaway risks
• Property Values: Decreased home values, higher insurance rates, difficulty selling properties near BESS.

Are BESS being placed fairly across NYC?

No. BESS facilities are disproportionately sited in:

• Lower-income neighborhoods
• Communities of color
• Areas with less political power
• Neighborhoods already burdened by industrial uses

This pattern raises serious environmental justice concerns and contradicts New York State's commitment to environmental justice through the Climate Leadership and Community Protection Act (CLCPA).

Who pays if there's a fire or contamination?

Currently, there are no guaranteed financial protections:

• No requirement that operators carry sufficient insurance for catastrophic incidents
• No mandated remediation bonds
• No clear liability framework
• No guarantee that parent companies will stand behind project subsidiaries

If contamination occurs, communities may be left to bear cleanup costs if the facility operator lacks adequate resources or declares bankruptcy.

What safety measures are in place?

BESS must meet FDNY requirements and NFPA 855 standards, including fire suppression systems, monitoring, and emergency protocols. However:

• The 2019 Arizona incident showed that even facilities with fire suppression systems can experience catastrophic failures
• Clean agent suppression systems often cannot stop thermal runaway
• Firefighters may need to let fires burn out to avoid explosion risks

Aren't we against clean energy?

No! We support clean energy and grid reliability. But we believe NYC can transition responsibly by:

• Restoring community voice through mandatory notification and approval
• Prioritizing industrial zones for large-scale BESS
• Establishing protective setbacks from homes and schools
• Mandating transparent safety reviews
• Ensuring financial protections for affected communities

The energy transition should protect communities, not endanger them.

What questions should I ask about a proposed BESS?

Demand answers before approval:

• Safety: What's the thermal runaway risk? What's the evacuation plan?
• Transparency: Where are the independent safety studies?
• Alternatives: Why can't this be in an industrial zone?
• Insurance: Who pays if there's contamination or property damage?
• Monitoring: How will the community be notified of safety issues?
• Remediation: What financial assurances exist for cleanup?

What can I do to protect my community?

Take action now:

• Get informed: Attend community board meetings (find yours at nyc.gov/communityboards), join advocacy groups
• Demand accountability: Contact your State Senator and Assembly Member demanding community board notification, approval, setbacks, safety studies, and financial protections
  Support legislation: Advocate for S.7197 / A.6955 and S.5208 / S.6605
• Build power: Organize neighbors, document concerns, engage media
• Sign petition: change.org/p/protect-nyc-neighborhoods-against-bess-responsible-siting-true-community-input

Where can I get more information?

Key Contacts:

• NYC Council: Contact your council member
• Community Board: nyc.gov/communityboards
• FDNY: For emergency safety concerns
• NY State PSC: For regulatory complaints

SOURCES AND REFERENCES

Government and Regulatory Sources

• Con Edison BQDM and NWS Programs: coned.com/en/save-money/rebates-incentives-tax-credits/rebates-incentives-tax-credits-for-commercial-industrial-buildings-customers/non-wires-solutions
• NYC DOB ESS Guide: nyc.gov/assets/fdny/downloads/pdf/business/ess-equipment-approval-installation-guide.pdf
• NYC Zoning Resolution: zr.planning.nyc.gov
• NYSERDA Battery Energy Storage Guidebook: nyserda.ny.gov/Programs/Clean-Energy-Siting-Resources/Battery-Energy-Storage-Guidebook
• NYSERDA ESS Permitting Guide (2025): nysolarmap.com/media/2307/ess-permitting-guide_2025-update_final_040325.pdf
• NYSERDA Zoning Guide (2nd Ed., 2024): nysolarmap.com/media/2222/zoning-guide-2nd-ed_final_4252024.pdf

Safety Standards

• FEMA: Battery Energy Storage Systems Fire Hazard and Response
• NFPA 855: Standard for Installation of Stationary Energy Storage Systems
• UL 9540: Standard for Energy Storage Systems
• UL 9540A: Test Method for Thermal Runaway Fire Propagation

Research and Incidents

• MDPI 2024: Environmental and Safety Assessment of BESS
• Clean Energy Associates: BESS Fire Safety Report (May 2025)
• Arizona Corporation Commission: McMicken Analysis (2020)
• Warwick NY Fire (Dec 2025): hudsonvalley.news12.com/battery-storage-facility-catches-fire-in-warwick

Proposed Legislation

• S.5208: nysenate.gov/legislation/bills/2025/S5208
• S.6605: nysenate.gov/legislation/bills/2023/S6605
• S.7197 / A.6955 (2023 session)
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For educational purposes.

Information from publicly available sources.

Last Updated: January 2026