The New York City Energy Efficiency Corporation (NYCEEC) issued a $1 million loan to energy storage firm Demand Energy to boost grid reliability in Brownsville, Brooklyn.NYCEEC is a non-profit financial institution which provides loans and grants to ensure grid stability through the implementation of energy efficiency and clean energy projects in New York city.
Demand Energy will use the NYCEEC loan to install and integrate its energy storage system with a 400KW solar microgrid owned by Marcus Garvey Housing firm.
The energy storage system will allow solar power generation, storage and provision to residents of Marcus Garvey apartments.
The project is expected to help Con Edison ensure grid stability by enabling some 625 apartments connected to the microgrid to avoid using grid power during peak demands.
The system will allow residents of Marcus Garvey apartments to earn extra revenue by receiving demand response incentives from Con Edison’s Brooklyn Queens Neighborhood demand response programme.
In a press statement, the NYCEEC said its loan will ensure Con Edison achieves its goal to avoid investing over $1 billion in building new energy generation resources but rather invest in energy efficiency and demand response programmes.
[quote] The project falls under multiple efforts being implemented by energy stakeholders in New York to ensure the state achieves targets set under the state's Reforming the Energy Vision (REV) Initiative to reduce carbon emissions through the creation of a clean energy system providing consumers with affordable electricity.
"Managing on-site generation and extracting value from the demand response market have made battery storage a smart, cost-effective choice," said Brian Asparro, chief commercial officer for Demand Energy.
"Energy storage closes the loop with energy efficiency and clean, localised generation, and helps encourage their adoption," said Posie Constable, NYCEEC's head of business development.
Demand response and grid stability
In line with its vision to avoid investing over $1 billion in new energy generation sources in the Brooklyn and Queens administrative divisions, in mid-August, Con Edison partnered with energy management firm Power Efficiency Corporation for rollout of a demand response programme.
Under the agreement, Power Efficiency Corporation will provide the utility company with 12MW of demand response energy in the summer months of 2017 and 2018.
The solutions provider won the contract in an auction in which Con Edison signed multiple demand response contracts.The utility company said it plans to reduce 52MW of peak load in Brooklyn through the implementation of the programmes.
However, Con Edison has thus far signed contracts for 41MW of demand response energy during the summer months. [Con Edison reduces peak demand with battery storage].
The programmes will include the deployment of both customer and non-traditional utility demand response solutions.