Consolidated Edison plans to offer $161 million to spur 100 MW of energy efficiency and demand response in greater New York City, according to a recent filing by the utility with New York regulators.
The utility, one of the nation’s largest, also intends to make $40 million available for 25 MW of new combined heat and power.
The incentives are in addition to the utility’s established programs. They emerged out of a state investigation into how to make up for a power shortfall should a major nuclear plant retire.
So look to Con Edison – along with the New York State Energy & Research Authority – to reach out to energy service companies, contractors, equipment vendors, CHP installers, large building owners, real estate developers and others when it starts marketing the new program. They also may seek aggregators who group small energy users to reduce peak load.
Technologies eligible for the demand reduction incentives will include thermal storage, battery storage, demand response, building management systems, chiller/heating ventilation and air conditioning, lighting, and fuel switching. The utility will pay the incentives on a dollar per kW basis and will offer bonuses for large projects.
To be eligible for the CHP incentives, a project must be installed at a Con Edison customer site. (The utility’s service territory includes New York City and Westchester County.) CHP projects can range in size from 50 kW to 1.3 MW and will be eligible for both base and bonus incentives.
The idea of offering the incentives emerged when the state public service commission began looking for ways to make up for a power supply shortfall should the 2,040 MW Indian Point retire. Con Edison suggested energy efficiency, demand response and CHP as a partial replacement. After the commission examined the programs, it decided they would be good for the state whether or not Indian Point closes. So the commission ordered Con Edison to move forward with them.
The utility emphasized that the plan is a “living” document that will be updated as needed. It did not specify when it will begin offering the incentives. Stay tuned to our RFP page for details as they emerge.
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