Savings For Large Con Edison Customers: 'Going Once, Going Twice ... Sold!'
Con Edison is looking to reduce the amount of power flowing through its wires and is willing to pay owners of large buildings for measures that cut their energy use from the grid.
The Demand Management Program has paid out about $100 million in incentives for 500 projects at large customer locations since the program began in 2014. Those projects provide about 100 MW of savings.
Up until this year, Con Edison used to set the incentive levels. But now the Company has adopted a new, market-based approach and in the last few months successfully held two auctions for 2018.
The Company plans to hold two more auctions, this time for 2019, for bidders to propose projects and specify how much money on a per-kilowatt basis they want for completion. Con Edison will review the proposals and give preference to those with the lowest requests.
Con Edison is offering this next phase of its Demand Management Program as part of its strategy to manage electrical demand in New York City and Westchester County on hot summer afternoons when the need for power is greatest. Managing that peak need for power helps Con Edison keep service reliable for its 3.4 million customers.
Large commercial customers can help by completing projects that will reduce their bills and even generate revenue by enabling these customers to participate in smart usage programs – also known as demand response - down the line. The auctions will also be open to Con Edison market partners and aggregators.
“We know these customers and other industry players are tech and business savvy, so we expect to see some great projects.” said Vicki Kuo, director of Energy Efficiency and Demand Management at Con Edison. “Projects that empower customers to manage their energy use are great investments and produce an even quicker return when Con Edison pays part of the cost.”
Con Edison has allocated $32 million to the program in 2019. That is an increase from $24 million allocated in 2018.
Proposals for the first auction for projects that will receive rebates in 2019 are due Nov. 17, 2017 with Con Edison planning to make selections by Jan. 22, 2018. Projects that can’t make the Nov. 17 deadline, can apply for the second auction by March 1, 2018.
The deadlines for completing projects are between Aug. 1, 2019 and Oct. 15, 2019, depending on the type of project.
Projects can include HVAC; generators and controls that enable smart usage – or demand response; chillers, thermal storage, and batteries.
The 2019 program includes a new requirement that is intended to ensure projects are completed on time. Auction winners will need to post cash as collateral with Con Edison. Con Edison will return the cash once the project is completed on time.
Besides looking for projects requiring the lowest incentive funding, Con Edison will prefer projects that minimize project cost per kW saved.
The company will hold a Webinar from 1 p.m. to 2 p.m. on September 26, 2017 to discuss the program, updated technical requirements, and funding, and answer questions.
Con Edison is a subsidiary of Consolidated Edison, Inc. [NYSE: ED], one of the nation’s largest investor-owned energy companies, with approximately $12 billion in annual revenues and $49 billion in assets. The utility delivers electricity, natural gas and steam to 3.4 million customers in New York City and Westchester County, N.Y. For additional financial, operations and customer service information, visit conEd.com or coned.com/energyefficiency. Also, visit us on Twitter and Facebook.