ConEdison Solutions is alerting developers, building owners and institutions in New York City to take advantage of major increases in “peak demand,” or peak load, financial incentives offered to large energy users that agree to curtail energy use on the summer’s hottest days, when energy demand reaches its peak.
The proposed incentive levels in 2014 will increase payments by 60 percent or more above what was paid for similar “demand response” (DR) curtailments in 2013. Targeting major users in the five boroughs, the enhanced incentives are provided by the New York Independent System Operator (NYISO) and Con Edison, the regulated utility that serves New York City and Westchester. These new Con Edison utility demand response incentive payments were formally approved by the New York State Public Service Commission (NYPSC) in mid-March.
“Peak load incentives for DR programs available in New York City are about to increase significantly over the course of a single year, and the city’s forward-thinking energy users will be poised to take full advantage,” said Jorge J. Lopez, President and CEO of ConEdison Solutions. “Additionally, customers are leveraging our advanced demand response technology to earn revenues throughout the year by executing energy ‘sell-backs’ timed to periods when market prices are right.”
When demand is extremely high, “peak load” alerts are issued by the NYISO, a not-for-profit corporation responsible for operating New York’s statewide electricity grid and maintaining its reliability. In addition, when Con Edison detects extraordinary demand on its local utility distribution system, the utility will call an event requesting customers participating in their DR programs to curtail consumption. Users who participate in these programs and reduce energy consumption during these events earn incentive payments.
ConEdison Solutions officials emphasized, however, that owners and institutions must act quickly to take full advantage of the increased 2014 incentives because participant’s applications must be filed with the NYISO and Con Edison by May 1st in order to participate in the June 1, 2014 program start date.
To enable clients to achieve maximum value from demand response opportunities, ConEdison Solutions has equipped large-scale energy users with a sophisticated demand response capability called VPower. VPower leverages proprietary software to give users the ability to control their response to grid events called by the ISO or utilities, including Con Edison. In addition, the VPower software gives customers a dashboard that provides a view into system performance and compliance during an event. This enables customers to ensure they are maximizing the value of their participation and meeting their commitment requirements.
ConEdison Solutions works with clients to assess their facilities’ energy requirements and system capabilities to identify opportunities for reducing consumption when an event is called. The process results in a protocol for clients that identifies the equipment modifications necessary to achieve load reductions. ConEdison Solutions, as part of the VPower installation, will synchronize these modifications with the client’s building management system to allow for a quick response and minimal involvement of on-site staff.
As part of the DR evaluation, ConEdison Solutions incorporates the benefits of demand response in modifying a client’s load shape into their energy supply portfolio. In addition, as a result of the engineering evaluation of a client’s facility, ConEdison Solutions will look to identify energy efficiency opportunities for the client as well.
For more stories on energy incentives, click this link.