Con Edison Ups Storage Ante For Demand Management In New York

Con Edison is offering incentives increased by over 300% for energy storage for demand management.
Published: Mon 03 Nov 2014

With the aim of helping to achieve 125MW of permanent peak load reductions by June 1, 2016, New York utility Consolidated Edison has revised upwards the incentives for its demand management program – with storage the biggest potential beneficiary, with the largest incentives.

Increased incentives for energy storage

The current incentives for both thermal and battery storage are $600/kW. The revised incentives are $2,600/kW for thermal storage and $2,100/kW for battery storage

Other project types are also significantly increased. Incentives for chiller/HVAC/building management system/controls and lighting/LED project types, currently both $0.16/kWh, increase respectively to $0.16/kWh + $1,250/kW and $0.16/kWh + $800/kW. Demand response enablement increases from $200/kW to $800/kW. Non-electric (i.e. steam or natural gas) air conditioning, formerly under the Steam A/C program, is in the range $500-1,000/kW.

In addition, projects that achieve a peak reduction of 500kW or more can earn bonus incentives. For projects over 500kW this is an additional 10% of the kW incentive, and for projects over 1MW an additional 15% of the kW incentive.

These incentives are capped at 50% of the installed project cost, and available on a first come, first-served basis, until funds are exhausted or the program has expired.

Demand management project requirements

Con Edison’s demand management program is open to building owners and building managers, who are the company’s customers, and third party developers acting on behalf of the building owners and building managers.

To qualify for the program, projects or portfolios must have a combined peak demand reduction of 50kW or greater and be installed and operational by June 1, 2016. For third party aggregators, each facility within a portfolio must reduce a minimum of 10kW peak demand.

The prescribed time period for the reductions is Monday to Friday, 2-6 p.m., for the months of June through September. Projects are expected to achieve the peak demand reduction for a minimum of 10 years.

The demand management program will be implemented with the New York State Energy Research and Development Authority (NYSERDA). It is budgeted at $219 million – $161 million for the incentives and $58 million for operating costs – with recovery from the customer base, and seeks to achieve 100MW of load reduction.  The supplementary Combined Heat and Power program, to be administered by NYSERDA, will seek the remaining 25MW reduction to achieve the total 125MW target.

Revising New York’s energy vision

Storage is a key component of New York ‘Reforming the Energy Vision’ initiative, and the PSC staff’s straw proposal called for increased employment of storage, among other distributed energy resources. [Engerati-Reforming New York's Energy Vision]

In its response to the straw proposal the New York Battery and Energy Storage Technology Consortium (NY-BEST) called for greater elucidation of the role and value of storage. There should also be a mapping of the grid to identify areas of congestion, areas of development opportunity and the like to enable the mapping and aggregation of distributed energy resources to the grid.

No specific mention was made of a mandate or target for storage, such as has been introduced in California. [Engerati-California's Energy Storage Mandate-Will Others Follow?]