Advancements in Distributed Energy, Energy Efficiency, & Renewables
Advancements in Distributed Energy, Energy Efficiency, & Renewables
Overview
In alignment with New York’s climate goals, Con Edison is expanding its efforts to boost efficiency, a cornerstone of the state’s objectives. Our company is investing in initiatives and projects designed to decrease emissions, lower customer bills, and meet demand. In addition, we continue to make stride with distributed energy resources, guided by our comprehensive Distributed System Implementation Plans.
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Con Edison is committed to New York State’s and City’s ambitious targets for Distributed Solar, Energy Storage and Zero Emissions Vehicles and continues to work with policy makers and stakeholders to remove barriers to Distributed Generation (DG) interconnection. Both CECONY and O&R publish Distributed System Implementation Plans, most recently in June 2023, that serves as a five-year outlook in areas such as Integrated Planning, Information Sharing and Market Services. The Implementation Plan engages stakeholders in the processes and programs that continue to shape the Distributed System Platform. At the end of 2023, our utilities had total of 1,228 megawatts of distributed energy resources connected to our electric delivery systems.
CECONY and O&R continue to work with the DG community to facilitate and streamline the interconnection process. In addition, both companies continue to publish hosting capacity maps for distributed solar, energy storage and electric vehicle development. Through the bi-annual Hosting Capacity Stakeholder Working group we continue to solicit feedback and align on approaches to increase the functionality of our hosting capacity maps. In January 2024, we updated our hosting capacity maps to capture electrification maps. These new electrification maps will provide additional information about available capacity for additional electrification use cases including winter capacity for electric heat pumps.
At the end of 2023, our utilities had total of 1,228 megawatts of distributed energy resources connected to our electric delivery systems.
CECONY and O&R continue to work with the New York Independent System Operator (NYISO) on its implementation of a Distributed Energy Resource (DER) Aggregator Market in compliance with FERC Order 2222. A DER Aggregator Market will allow smaller DERs that are interconnected to the distribution system to participate in the NYISO’s wholesale energy market. Both companies understand the need to continue to expand the value that DERs receive from the electric grid, as well as use these resources to provide services that can enhance grid flexibility. Technology continues to be a valuable component of overall value. And through an effort by the New York State utilities, there is an increasing focus on smart inverter functionality, which is the ability for an inverter to take operating signals and adjust parameters based upon grid needs. Advanced smart inverter functionality will be central to enhancing the relationship between the distribution system and DER.
Finally, CECONY and O&R recognize the value of increased data and information sharing. Since 2021, the companies have been working with stakeholders and the New York State Public Service Commission to find a more efficient and robust exchange of system and customer data through the Integrated Energy Data Resource (IEDR) efforts. In 2023, we enabled a centralized statewide integrated hosting capacity map as part of the initial public version of the IEDR. Throughout the year, enhancements were made to centralize a repository of distributed energy resources (DERs), facilitate the siting of DERs including solar and battery storage locations, and improve the usability of the IEDR website. In 2024, we are transitioning to Phase 2 of the IEDR implementation, which includes the development of use-cases that facilitate the deployment of energy efficiency programs in Disadvantaged Communities.
Energy Efficiency
Con Edison has been a leader in Energy Efficiency programs. CECONY and O&R offer a broad array of Energy Efficiency initiatives designed to reduce greenhouse gas emissions, lower customer bills, and give New Yorkers control over their energy choices.
In 2023, the CECONY Energy Efficiency programs spent a total of $336 million (incentives, implementation fees and support function costs) for electric and gas customers to choose energy-saving heat pumps, HVAC, lighting, building management systems, and other equipment.
CECONY and O&R have ramped up energy efficiency programs that facilitate New York’s ambitious clean energy goals, offering a broad array of initiatives designed to reduce greenhouse gas emissions, lower customer bills, and give New Yorkers control over their energy choices. We are working with partners across our service territory to better serve low- and moderate-income customers, as well as providing choices to our customers to reduce their reliance on fossil fuels through adoption of beneficial electrification technologies such as heat pumps and electric transportation. Additionally, CECONY and O&R are achieving deeper and longer- lived energy efficiency savings by targeting technology upgrades that have a greater impact.
Our customers are as diverse as the area we serve. That’s why we have targeted efficiency programs to help us deliver cost-effective, customer-centric offerings that emphasize the clear benefits and impacts of energy efficiency. We focus on four primary customer segments—commercial and industrial, small business, multifamily, and residential—designing our offerings to meet each customer segment needs. Our goal is to give customers multiple options and opportunities to reduce their energy use.
In 2023, CECONY reduced electrical usage by 569,229 megawatt hours & saved 1,712,275 dekatherms of gas.
In 2023, CECONY electric and gas customers who upgraded to energy-saving heat pumps, HVAC, lighting, building management systems, and other equipment received over $287 million in incentives in 2023.
CECONY’s 2023 energy efficiency programs supported customer upgrades that reduced electrical usage by 569,229 megawatt hours and saved 1,712,275 dekatherms of gas—that is the equivalent to taking more than 81,633 cars off the road or powering 46,234 homes for one year. Included in these results, are more than 5,562 customers that installed high-efficiency heat pumps under our Clean Heat Program, contributing 680 billion British Thermal Units of energy savings. Clean Heat technology is giving households and businesses new ways to reduce energy use, and CECONY is at the forefront in helping customers get more value for their money while protecting the environment.
O&R customers who upgraded to high efficiency energy-saving heat pumps, HVAC, lighting, building management systems, and other energy efficient equipment received over $14.4 million in incentives from us in 2023. In addition to the O&R customer incentives, our Rockland Electric Company (RECO) customers received over $2.9 million in incentives, taking advantage of energy efficiency and demand response programs that helped customers reduce their energy bills, convert to clean heating technologies, reduce peak demand, and lower their carbon emissions. O&R provides instant in-store rebates on the My ORU Store, our online marketplace, to make it easy for customers to make energy efficient choices. In 2023, the MY ORU Store expanded its offerings to business and low-to-moderate income customers, providing custom offers, instant incentives, and manufacturer discounts, allowing customers to find affordable products to help them better manage their energy use. Through multi-channel marketing, including targeted personalized emails, customers are made aware of the variety of products and programs that can help them reduce their consumption and lower their energy bills.
In 2023, O&R reduced electrical usage by over 94,000 megawatt hours & saved over 81,000 dekatherms of gas
O&R is using technology to give households and businesses new ways to reduce their energy use, and get more value for their money, all while supporting the environment. In 2023, upgrades made by customers through our energy efficiency programs reduced electrical usage by over 94,000 megawatt hours and saved over 81,000 dekatherms of gas. Additionally, O&R saved over 35 million British Thermal Units through our Clean Heat program. This reduced our customers’ carbon emissions by more than 55,000 tons, which is equivalent to taking more than 12,000 cars off the road.
Data is from CECONY + O&R
Renewables
For the past decade, CECONY and O&R, along with Sustainable CUNY, government agencies, and other parties, have encouraged residents and businesses to consider solar to reduce their energy bills and protect the environment. Our customers are responding.
Our customers installed 822 megawatts (MW) (579MW for CECONY; 243MW for O&R) of clean, renewable power by year-end 2023. This total includes 64,709 CECONY installations and 13,563 O&R installations. Con Edison is working to improve access to clean energy to all our customers, regardless of income level, whether they own or rent, or whether they live in a house or an apartment. CECONY’s customers installed 92.1MW of solar in 2023, setting a Company record. This is in addition to passing the cumulative 500MW milestone for solar in March 2023. O&R’s customers installed 30.1MW in 2023, which is the second-highest installed annual capacity in O&R history. In 2023, O&R added 1,562 solar customers, which is the most in a year since 2016.
CECONY continues to explore opportunities to be more innovative in renewable and energy storage installations. For example, CECONY enhanced microprocessor relays to allow additional solar capacity to export power into our network systems, enabling the construction of additional community solar projects at higher capacities across its service territory.
Our customers installed 822 megawatts (MW) (579MW for CECONY; 243MW for O&R) of clean, renewable power by year-end 2023. This total includes 64,709 CECONY installations and 13,563 O&R installations.
O&R continues to interconnect distributed energy resources (DER) at an increasing rate and is actively seeking opportunities to increase hosting capacity through Cost Sharing 2.0. “Flexible Interconnections” are a set of rules allowing multiple DER projects to share upgrade costs making it more affordable. O&R is participating in the IEEE working group designated to draft the next version of the IEEE 1547 standard for interconnection and interoperability of DERs. Through these initiatives, CECONY and O&R are helping to realize a greener energy future. As noted above, both CECONY and O&R continue efforts to expand distributed solar and other distributed energy resources throughout each service territory. The chart below shows the cumulative interconnection for distributed solar since 2011:
Energy Storage
Con Edison is helping New York State achieve its ambitious energy storage goals of 1,500 megawatts (MW) by 2025 and 6,000 MW by 2030. Energy storage will play a critical role in our clean energy future, and we continue to actively engage with the State’s Department of Public Service and the New York State Energy Research and Development Authority to support storage policy goals. CECONY and O&R seek to deploy storage using many innovative business models. When this storage is operating it will store energy produced by wind and solar, which will allow for increased reliance on these clean but intermittent sources of electricity. Many of these storage assets will participate in New York Independent System Operator (NYISO) markets to fulfill this objective. Storage connected to distribution grids also provides opportunities to defer infrastructure build, enhance local reliability, support the deployment of EV charging infrastructure, and help commercial and residential customers manage their bills.
New York State energy storage goals: 1,500MW by 2025 and 6,000MW by 2030
Regulatory and legislative changes in recent years may alter the trajectory of storage deployment. A 2022 New York State Public Service Commission (NYSPSC) ruling on the Allocated Embedded Cost of Service Methodology may lead to lower costs for charging. The Inflation Reduction Act, passed by the U.S. Congress in 2022, has increased access to generous investment tax credits for storage projects. These changes allow developers to offset some of the financial challenges presented by supply chain, commodity price, and interest rate uncertainty.
CECONY continues to address energy storage safety and zoning concerns, working closely with New York City agencies, state agencies, storage developers, and community stakeholders. The Fire Department of the City of New York used CECONY’s Ozone Park battery site as a model to develop its requirements for deploying outdoor stationary battery projects in New York City and create a Certificate of Fitness training module requirement for all battery owners. The Ozone Park system was used to establish fire system requirements, emergency response and other safety related items. Additionally, we drilled with first responders to practice our response to various scenarios including a catastrophic incident.
Containerized Energy Storage System.
Through 2023, CECONY interconnected a total of 588 distribution-connected customer energy storage systems, totaling 46.5 MW of capacity, and O&R also interconnected 537 total projects for a total of 35.5 MW. Of the 587 O&R projects, 577 were behind-the-meter residential energy storage systems, totaling 5.23 MW of capacity.
O&R also continues to work closely with external stakeholders such as authorities having jurisdiction (AHJ), first responders and fire departments to further inform and educate on energy storage. In 2022, O&R hosted three separate emergency response personnel training sessions on proper safety protocols for lithium-ion battery energy storage systems for Rockland, Orange, and Sullivan counties. O&R wants first responders to understand the various safety aspects built into energy storage systems and their role in case of any battery emergencies. In 2024, O&R intends to hold a drill with applicable AHJs at its Pomona battery energy storage system (BESS).
Through 2023, CECONY interconnected a total of 588 distribution-connected customer energy storage systems, totaling 46.5 MW of capacity, and O&R also interconnected 537 total projects for a total of 35.5 MW. Of the 587 O&R projects, 577 were behind-the-meter residential energy storage systems, totaling 5.23 MW of capacity.
In recognition of the importance of storage deployment to the clean energy transition, CECONY, has established a new Energy Storage Organization to develop an enterprise-wide storage strategy and implementation plan. The Energy Storage Organization will create new products and deployment channels to achieve New York State’s energy storage goals. This group will respond rapidly to new opportunities presented in NYSPSC orders.
Utility-Scale Energy Storage
In 2019, CECONY and O&R issued a request for proposals (RFP) as part of our bulk solicitation program that solicited dispatch rights from utility-scale storage projects connected directly to the transmission or distribution grids. Both CECONY and O&R have continued to release further RFPs to advance state storage goals, smooth the way for renewables with variable generation profiles to take up a larger share of capacity, and provide flexibility to manage local grid contingencies.
In 2019, CECONY commissioned its first utility-owned storage project, a lithium-ion phosphate battery designed for 2 MW / 10 megawatt hours (MWh) in Ozone Park, Queens. The facility is used to meet peak local demand and reliability needs. CECONY has also requested funding and received authorization for utility-owned storage in its rate case covering 2023 -2025. In 2023, CECONY commissioned a utility-owned BESS with a capacity of 7.5 MW / 30 MWh at a Staten Island substation. In addition, we are integrating current and future BESS into utility operations with certain maintenance functions carried out with Local 1, 2 and 3 union workforces and centralizing operations for continuous monitoring and dispatch.
O&R commissioned its first utility-owned and controlled storage project in Pomona, NY in December 2020 after extensive collaboration with town officials and community first responders. The battery storage system is currently 3 MW/12 MWh with the potential to be upgraded to 3 MW/ 18 MWh. O&R currently operates the Pomona battery storage system, which has successfully provided peak demand reduction and enhanced system reliability during the summer periods (of 2021, 2022 and 2023.). As of August 2023, the NYISO granted the Pomona BESS permission to participate in the wholesale energy market. Looking ahead O&R will also be registering the Pomona BESS to operate in the NYISO Ancillary and Capacity markets.
CECONY and O&R continue to implement energy storage demonstration projects to test new business models. A total of 3 MW of such projects are operating in CECONY’s service territory.
The ISBM project plan is to install 300 solar-plus-storage systems at customer homes. The total project portfolio will be approximately 2 MW / 4.7 MWh. This project will also be the first of its kind to participate in the NYISO wholesale market. To date, the project has successfully gained permission to operate for 147 customers with a goal of all 300 customers by the end of 2024.
Through its Innovative Storage Business Model (ISBM) demonstration project, O&R is working with Sunrun, Inc. to explore how residential solar-plus-storage systems can provide resiliency benefits to customers, provide demand relief benefits to the utility’s local distribution system, and earn additional revenues from participating in NYISO wholesale markets. The ISBM project plan is to install 300 solar-plus-storage systems at customer homes. The total project portfolio will be approximately 2 MW / 4.7 MWh. This project will also be the first of its kind to participate in the NYISO wholesale market. To date, the project has successfully gained permission to operate for 147 customers with a goal of all 300 customers by the end of 2024.
In New Jersey, O&R/RECO is working with New Jersey’s Electric Distribution Companies in response to New Jersey Board of Public Utilities’ “New Jersey Energy Storage Incentive Program”. This program will shape New Jersey energy storage markets by encouraging energy storage deployments with incentives that are both fixed and performance-based.
Energy Storage through Non-Wire Solutions (NWS) /Non-Wire Alternative (NWAs)
CECONY and O&R also support energy storage through Non-Wire Solutions (NWS) (also referred to as Non-Wires Alternatives, or NWA). Both Companies consider storage to be important assets to meet peak. At CECONY, NWS are supporting and incentivizing third-party owned and operated energy storage to meet local demand. There are currently three active program areas across seven distribution networks:
- Brooklyn-Queens Demand Management (BQDM) (Crown Heights, Ridgewood, and Richmond Hill),
- Newtown (Borden, Sunnyside, and Maspeth),
- and Jamaica (Jamaica network), along with one recently closed program area: Water Street/Plymouth (Williamsburg and Prospect Park).
CECONY’s NWS portfolios have interconnected 4.8 MW of energy storage through 2023, and have additional energy storage systems under contract for commercial operation in 2024. In 2022, CECONY announced new incentives for customer-sited energy storage systems that help meet local peak demand in the BQDM program area. The BQDM program is seeking applications for up to 15 MW of grid-connected or load-following energy storage systems that will be in operation by summer 2026. In 2023, CECONY also issued a request for proposals for Energy Storage among other customer solutions to help meet local peak demand in the Jamaica network by summer 2026 and 2027.
O&R entered into a contract in 2021 for the West Warwick NWA project. This project will be owned and operated by a third-party and will use three separate energy storage systems to address distribution system constraints. The project will use batteries totaling 12 MW / 60 MWh allowing O&R to defer the construction of a new transmission/distribution substation. While the construction of the three energy storage systems was completed at the end of June 2023, the three systems are not yet in commercial operation due to a fire. O&R is working with the third-party to address the damage and to repair the system for use in the upcoming 2024 summer peak season. O&R has also held several outreach discussions with the local town and the first responders to address their concerns.
O&R plans to procure another energy storage system to meet distribution system needs in place of traditional utility investments. O&R’s Sparkill project aims to defer the construction of a new circuit tie in the area. The Sparkill NWA project is expected to be in-service by summer of 2026.
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